- US Dollar was hit badly during the past couple of sessions against most major currencies, including the Swiss Franc.
- The USDCHF broke a couple of major support trend lines on the hourly chart to open the doors for more losses.
- Today, the Swiss UBS Consumption Indicator published by UBS posted an increase from 1.45 (revised) to 1.53 in Feb 2016.
- Moreover, the KOF Swiss Leading Indicator declined from the last revised reading of 102.6 to 102.5 in March 2016.
The US Dollar was crushed recently against most peers after cautious comments from the Fed chairwoman, Janet Yellen. The USDCHF was also not far, as the pair traded down and broke a couple of major support trend lines on the hourly chart.
There were a couple of ranging patterns formed on the hourly chart, which opened the doors for more losses recently.
On the downside, if the bears remain in control, then a move towards the 0.9600 support area is possible.
Swiss UBS Consumption Indicator
Today in Switzerland, the UBS Consumption Indicator, which is a leading indicator of private consumption trends, which is the most important component of Swiss GDP was published by UBS. The outcome was positive, as there was an increase from the last revised reading of 1.45 to 1.53 in March 2016.
The report highlighted that “The UBS Consumption Indicator rose on the back of continued strong demand for automobiles, which increased 1.2% year on year in February. The number of new car registrations surpassed the high figure for February 2015, when importers discounted prices after the EURCHF exchange rate floor was abandoned. Retailer sentiment, by contrast, declined again slightly in February; the KOF survey dropped to -11 index points (from -8 index points in January)”.
Overall, the Swiss franc looks set for more gains against the US dollar, and the USDCHF pair could test 0.9600.