Swiss November ZEW business confidence index registers strongest gain in 5 months

Business confidence in Switzerland registered its highest gain in five months, while economic sentiment for a third consecutive month in November on expectations that the momentum of economic development is set to hold steady in the next six months.

The Swiss ZEW business confidence index strengthened to 8.9 for November from 5.2 the previous month and this was the strongest reading for 5 months after three consecutive monthly gains. In contrast, there was a decline in the current conditions to 14.7 from 17.9 previously.

Close to 75 percent of survey respondents expect the economic development to be unchanged over the next six months, while 85 percent of the survey’s replies indicated that the economic situation is normal. The ZEW-Credit Suisse Indicator for the economic sentiment in Switzerland increased by 3.7 points to a current reading of 8.9 points.

However, the assessment of the current economic situation in Switzerland deteriorated with the corresponding indicator declining by 3.2 points to a level of 14.7 points.

Meanwhile, the survey results are unlikely to have a significant impact on the short-term outlook, especially given expectations that the US Presidential election will have a significant impact on the global political and economic outlook.

At 12:10GMT, the USD/CHF currency pair was 0.31 percent higher at 1.0050, compared to previous close of 1.0019, while at 12:00GMT the FxWirePro's Hourly CHF Strength Index remained highly bearish at -108.342 (lower than the benchmark of -100 for bearish trend), while the FxWirePro's Hourly Dollar Strength Index remained highly bullish at 141.687 (higher than the benchmark of 100 for bullish trend)

Therefore, it is good to go long on USD/CHF. For more details, visit http://www.fxwirepro.com/currencyindex