USD/CHF Price Action Suggests Bulls Taking Over Amid Depressing Swiss Retail Sales

Switzerland – Retail Sales

On Monday, at GMT 7:15 a.m., the Swiss Federal Statistical Office released the year-over-year retail sales figure, which measures the change in the total value of sales made by the retail sector in the country. However, this figure is adjusted for inflation in order to offer an accurate overview.

Binary options traders consider the Swiss retail sales figure to be one of the main gauges of consumer confidence, which makes up the majority of the overall economic activity in Switzerland. Since consumer spending is directly correlated with consumer confidence, it can signal future economic activity as well.

Last month, the value of Swiss retail sales decreased by -0.4% and the forecast for May was set at an increase of 0.3%. The actual figure came much worse than what the market was expecting, at -1.3% decrease.

United States – Institute for Supply Management (ISM) Manufacturing PMI

Later, at GMT 2:00 p.m., the Institute for Supply Management released its manufacturing PMI figure for the United States. The ISM’s US manufacturing PMI measures the level of a diffusion index based on a survey of 400 purchasing managers.

Purchasing managers in the United States are involved in the supply side of the economy. As most companies reduce their expenses and production based on their sales forecast, the survey of purchasing managers reveals the overall optimism of various companies in the country. Hence, binary options traders can easily figure out the sentiment regarding the economic condition in the country from the ISM manufacturing PMI readings.

Last month, the ISM manufacturing PMI for the United States came out at 51.8 and the forecast for this month was set at 51.0. However, the actual figure came out slightly lower, at 50.8.

Trade Recommendation for the USD/CHF

USDCHFDaily

Since breaking below the uptrend line on February 5, the USD/CHF remained bearish for the last two months. Yesterday, the USD/CHF formed a bullish pin bar after the price got rejected around the support level near the 0.9520 pivot zone.

As the Swiss retail sales figure came out much worse than what the market was expecting, the fundamentals also suggest that the USD/CHF would likely remain bullish this week.

Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the USD/CHF with their binary options brokers.

Recommended Broker for US traders: Finpari

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