Switzerland posted a record trade surplus and the country’s economic momentum is expected to continue through the third quarter. Risk aversion in the global markets has pushed up the Swiss franc, along with related exchange traded funds (ETFs).
The Swiss Federal Customs Office stated that exports increased by 2.2%, reports Catherine Bosley for Reuters. Additionally, Switzerland’s economic outlook is improving, with the ZEW investor sentiment index surging to 9.1 points in August, compared to 2.2 in July. Latest manufacturing PMI report increased to 66.9, a new record.
The Swiss franc has appreciated more than 10% against the euro in the wake of the eurozone problems, which has raised fears about export numbers but so far hasn’t noticeably diminished export numbers.
The Swiss National Bank currently has no exchange rate target and is currently focusing on price stability, report Sven Egenter and Silke Koltrowitz for Reuters. Switzerland’s economy is expected to expand by around 2.2% this year. There is currently no risk of inflation or deflation in Switzerland’s economy. The markets largely expect the Central Bank to hold interest rates at current low levels.