Swiss Franc Soars on Strong GDP, Inflation Data
The Swiss Franc (CHF) strengthened against the US Dollar (USD) on Thursday's early European session, rebounding from its monthly lows as economic data exceeded expectations. The GDP growth rate in Switzerland reached a 1.9% pace in the second quarter, marking the strongest performance in five years, with yearly GDP growth rising to 2.8%. This upbeat news came alongside inflation data that showed consumer prices accelerating to 0.4% in August, beating market forecasts of a flat reading.
The Swiss Federal Statistics Office reported a year-over-year increase in consumer prices at 0.8%, the fastest growth in two years, which significantly surpassed expectations of a 0.5% reading. Meanwhile, in the US, ADP Employment Change data fell short of predictions with only a 38K increase in net private employment in August.
New York Federal Reserve President John Williams attributed rising bond yields to a solid economy rather than inflation fears and stated that the central bank is still collecting data to decide on interest rates. Later on Thursday, Board member Christopher Waller's speech will likely offer a more hawkish view.