Switzerland's economy continues to show steady growth.

The Swiss franc appreciated slightly, partly supported by the weakening of the U.S. dollar. Meanwhile, the latest U.S. employment report has boosted investor confidence, leading to speculation that the Federal Reserve may consider a significant interest rate cut this month. The U.S. economy added fewer jobs than expected in August, following a sharp decline in employment growth in June and July.

The Consumer Confidence Index in Switzerland fell by 2.2 points to -34.6 in August. This decline signals that households have a more negative outlook on economic growth, primarily due to concerns over decreasing savings capacity as the prices of essential goods continue to rise. At the same time, consumers are hesitant to make large purchases due to concerns about their ability to repay debts in the long term, impacting their personal financial situation and job security.

Switzerland's GDP grew by 0.7% in the second quarter, marking the fastest economic expansion since 2022. This growth was mainly driven by an expansion in both the manufacturing sector, which grew by 2.6%, and the services sector, which expanded by 2.7%. The growth in the services sector was largely attributed to real estate and food services. The decline in goods exports had only a minor impact on economic growth. On an annual basis, the country's GDP grew by 1.8% in the second quarter, demonstrating expansion despite facing multiple crises.

Inflation decreased to 1.1% in August, down from 1.3% in the previous two months, due to a slight reduction in the prices of food and beverages, while transport costs continued to slow as energy prices declined. This reduction in inflation is a key factor that the Swiss National Bank considers when deciding on future interest rate cuts. It is anticipated that the Swiss National Bank may cut interest rates one to two more times by the end of this year.

Switzerland's unemployment rate increased to 2.4%, with the number of unemployed rising by 3,638 from the previous month to 111,354, the highest level in six months. Meanwhile, the youth unemployment rate for those aged 15 to 24 rose to 2.7% from 2.2%, indicating that companies are more inclined to hire experienced workers to navigate through various crises.

Techical analysis data (5H)

Resistance: 0.8445, 0.8456, 0.8465

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 0.8414 - 0.8424 but cannot break the support at 0.8424, you may set a TP at approximately 0.8456 and SL at around 0.8403 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 0.8445 - 0.8456, you may set a TP at approximately 0.8465 and SL at around 0.8414 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 0.8445 - 0.8456 but cannot break the resistance at 0.8445, you may set a TP at approximately 0.8414 and SL at around 0.8465 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 0.8414 - 0.8424, you may set a TP at approximately 0.8403 and SL at around 0.8456 or according to your acceptable risk.

Pivot point September 7, 2024 01:13 AM. GMT+7