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Switzerland January manufacturing PMI 48.8 vs 47.0 expected

Prior 45.8Swiss manufacturing activity continues to bounce back modestly but still continues to be in contraction territory for now. That being said, the output component is at least seen improving to 50.8 in January. And that marks the first return to the growth threshold for production since August last year.Procure does not that however, more firms are now “expecting to see a rise in protectionist measures over the next 12 months” as compared to the December survey. So, that is a bit of a warning on the outlook.The breakdown of overall activity in the manufacturing sector can be seen below:
This article was written by Justin Low at investinglive.com.

🔗 Source

💡 DMK Insight

Swiss manufacturing is showing signs of life, but don’t get too excited just yet. The recent uptick to 50.8 in production is significant as it crosses the growth threshold for the first time since August. However, the overall contraction in manufacturing activity suggests that this bounce might be more of a temporary blip than a sustained recovery. Traders should keep an eye on this data as it could influence the Swiss Franc (CHF) against major pairs like the EUR/CHF. If the trend continues, we might see a shift in sentiment, but for now, the market remains cautious. Watch for any further improvements in the coming months, as sustained growth could lead to bullish positions in CHF. On the flip side, if this improvement is short-lived and the manufacturing sector slips back into contraction, it could weigh heavily on the CHF, especially against stronger currencies. Keep an eye on the next manufacturing report and any related economic indicators that could signal a change in momentum.

📮 Takeaway

Monitor the next Swiss manufacturing report closely; a sustained improvement could strengthen the CHF against major pairs.

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