The ZEW confidence reading on economic expectations in Switzerland highlighted a sharp decline in market sentiment for the next six months. The Swiss franc (CHF), a rapidly strengthening currency due to its safe-haven status, was seen trading hesitantly today after the ZEW published a report showing expectations plummeting.
Switzerland’s economy has weathered the financial storm moderately well, with relatively few economic difficulties since 2007. Whether this sharp downturn in economic outlook will carry a lasting effect on the CHF is yet to be seen. It appears though that investor flights to safety will continue to aid the Swissie as global market turmoil persists.
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