A trade balance report out from Switzerland this morning revealed the national surplus is beginning to decline as a strengthened Swiss franc (CHF) gouges exports. The decline does not seem to have been anticipated as deep as it eventually came, which has put many traders on the defensive.
A move from a trade surplus of roughly 2.81B CHF to 1.97B CHF was priced in, but the actual results were well below this mark at 0.81B. The indication appears to be that demand for Swiss goods has declined as the value of their currency made the goods too expensive. The impact on the franc may be a deeper depreciation, but in a controlled manner as it was recently pegged to the EUR.
Read more forex trading news on our forex blog .