SNB remains concerned about the possibility of increasing inflation.

The Swiss Franc has remained strong since the beginning of the past month, following a slight weakening in July. However, ongoing conflicts in the Middle East are another factor causing investors to be increasingly cautious about their investments. Additionally, it has been revealed that the Swiss National Bank (SNB) continues to support the value of the Swiss Franc, but the recent weakening of the Franc indicates that investors are still buying the dollar due to differing interest rates.

The foreign exchange reserves of the Swiss National Bank (SNB) decreased to 678.45 billion Swiss Francs in September. Data shows that the SNB has been intervening in the exchange rate since the beginning of 2022. This is the lowest level of foreign exchange reserves since February 2017. SNB's goal is to support the value of the Swiss Franc and reduce the potential impact of inflation from imports.

The trade surplus in Switzerland increased to 5.02 billion Swiss Francs in September, indicating a rapid expansion compared to the previous month. This is due to a significant increase in exports, while imports saw a slight increase of 18.85 billion Swiss Francs, mainly consisting of consumer goods and chemical products. The United States remains a significant trading partner, but there was a reduction in imports from China.

Exports increased by 8% compared to the previous month, totaling 23.87 billion Swiss Francs. The substantial increase in chemical and pharmaceutical exports, up by 17.7%, is a sign of a recovering global economy. Exports to the United States increased by 16.8%, and to China by 25.6%.

Switzerland's unemployment rate remains stable at 2%, the same as in the previous month. The number of unemployed individuals increased by 945 to 90,826, and youth unemployment decreased by 33 to 9,779. A stable domestic market has led to a slight increase in hiring across various sectors compared to the previous month.

The yield on 10-year Swiss government bonds is currently in the range of 1.1% to 1.2%. Investors are still concerned that the Fed may raise interest rates in the United States and are awaiting decisions from the ECB. However, the SNB has chosen to keep its interest rate policy at 1.75%. In addition, the inflation rate in Switzerland has been continuously decreasing

Techical analysis data (5H)

Resistance: 0.8934, 0.8941, 0.8945

Support: 0.8923, 0.8919, 0.8912

Source: Investing.com