Release Explanation: As an indicator of economic performance, the PMI has the ability to easily affect currency valuations as Institutions re-align existing positions, or build new, on the strength of these reports. It measures the activity level of Purchasing Managers, who are surveyed on production, employment, inventories, orders, and delivery data.” The PMI is split into reads on manufacturing, service, and construction industries. A read over 50 denotes growth,” TheLFB-Forex.com Trade Team members said.
TheLFB-Forex.com Trade Desk Thoughts: The Purchasing Managers Index shows the industrial sector contracted in Switzerland for the eight consecutive month. The PMI number was released at 34.7, higher than expected. “The Swiss PMI confirms that the economy is taking a similar path as the Euro-area and the U.S. economies, which are in recession. The index sits at multi-year lows, showing that inflationary pressures are almost zero,” TheLFB-Forex.com Trade Team said.
Forex Technical Reaction: The swissy is trading barely under the 200-day moving average, an important support area.