The recent news from Forex suggests that the Swiss economy may be a little weak.
This is in fact old news to some, and the economic growth in Switzerland has been slow all year.
Recent markers suggest that this weakness is only worsening and this is possibly due to the emerging recession in the Eurozone. This recession is most definitely taking its toll on the Swiss economy and because of this, domestic demand appears to have weakened as well.
Switzerland is reportedly experiencing slight deflation, because of this the Swiss National Bank is said to be keeping its current policy rate at zero percent. With no signs of inflation, this policy rate will probably stay exactly where it is for the foreseeable future
Inflation appears to be nowhere on the horizon, which suggests that the economic activity in Switzerland will remain weak.
Other news from Forex includes this week’s huge EBC liquidity injections. Such injections have acted as a backstop to the easy-money policies of companies such as BOJ, Fed and BOE.
The above news is definitely good news for the extractive economies, the commodities and the pricing in the Eurozone.
Today’s US consumers still appear to be very wary when it comes to taking on a lot of debt in order to purchase goods. This anxiety should be lessened however as more and more people are now able to find jobs again.
House sales in the middle and the South of the country are better than those in the North East areas of the country. These areas in particular have tumbled quite considerably!
Two parties do however seem to be fighting for power, this is definitely indicated by the recent two-month payroll tax extension.