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Swiss Franc Rising – Economic Miracle or Walking Zombie?

swiss-franc-picture-courtesy-of-the-investment-site-at-wwwdoitinvestcom If you are a forex trader, you of course noticed the advance of the CHF (swiss franc) against most of the other currencies. According to the OECD’s calculations, the swiss franc is 44% overvalued against the dollar and 42% overvalued compared to the euro. And this has happened steadily in the last 6 months or so, without a retreat.
What would be the explanations?
One of them, widely accepted among the forex traders, is that the CHF is a so-called proxy (similar indicator) for gold and other commodities. It is understandable that the investors are not willing any longer to bet on the gold, which has risen 6 times during the last years and which is causing a “tulip mania” among masses. And whilst other commodities are harder to trade and more volatile, the CHF is still a paper currency, backed by the Swiss National Bank, which has some advantages.Read More »Swiss Franc Rising – Economic Miracle or Walking Zombie?

EU economic forecasts and figures November 2008


The European Commission’s autumn economic forecast indicates that GDP growth across the European Union will slow to 0.2% next year and the unemployment rate rise by 0.8%. However, EU consumer price inflation will fall from 3.9% to 2.4%. In 2010, GDP is expected to rise by 1.1%, although unemployment will continue to worsen due to improvements in labour productivity.

In Germany, Europe’s largest national economy, no growth is forecast for 2009, although the unemployment rate is expected to remain fairly stable and average earnings are expected to rise from 2.5% to 3.1% this year.

Read More »EU economic forecasts and figures November 2008