Friday’s trade saw GBP/CHF within the range of 1.5343-1.5530. The pair closed at 1.5347, losing 0.79% on a daily basis.
At 7:44 GMT today GBP/CHF was up 0.27% for the day to trade at 1.5380. The pair touched a daily high at 1.5396.
Fundamentals
United Kingdom
Construction activity
Activity in United Kingdom’s sector of construction probably continued to slow down in December, with the corresponding PMI coming in at 58.5, down from 59.4 in November. If so, this would be the lowest PMI reading since July 2013, when it was reported at 57.0. The index is based on a survey, encompassing purchasing managers of companies, operating in construction sector. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. However, lower-than-projected readings would lead to selling pressure on the sterling. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 9:30 GMT.
Switzerland
Manufacturing PMI
Activity in Switzerland’s manufacturing sector probably expanded in December. The SVME Manufacturing Purchasing Managers Index (PMI) probably climbed to a reading of 52.9 last month, according to the median forecast by experts, from 52.1 in November. This indicator provides clues over growth of production in the country.
The Manufacturing Purchasing Managers Index is based on five major components with the following weights: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stock of Items Purchased (10%). The PMI is derived from a monthly survey, where participants can either respond with “better”, “same”, or “worse” to the questions about the industry, in which they operate. The resulting PMI value is measured on a scale from 0 to 100. If the index shows a value of 100.0, this means that 100% of the respondents reported an improvement in conditions. If the index shows a value of 0, this means that 100% or the respondents reported a deterioration in conditions. If 100% of the respondents saw no change in conditions, the index will show a reading of 50.0. Therefore, values above 50.0 are indicative of optimism (expansion in the sector). Higher-than-expected PMI readings would support demand for the franc. The SVME (Schweizerischer Verband für Materialwirtschaft und Einkauf) in cooperation with Credit Suisse will release the official data at 8:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.5407. In case GBP/CHF manages to breach the first resistance level at 1.5470, it will probably continue up to test 1.5594. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5657.
If GBP/CHF manages to breach the first key support at 1.5283, it will probably continue to slide and test 1.5220. With this second key support broken, the movement to the downside will probably continue to 1.5096.
The mid-Pivot levels for today are as follows: M1 – 1.5158, M2 – 1.5252, M3 – 1.5345, M4 – 1.5439, M5 – 1.5532, M6 – 1.5626.
In weekly terms, the central pivot point is at 1.5398. The three key resistance levels are as follows: R1 – 1.5479, R2 – 1.5611, R3 – 1.5692. The three key support levels are: S1 – 1.5266, S2 – 1.5185, S3 – 1.5053.
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