Global macro overview for 20/09/2016:
The State Secretariat for Economic Affairs in Bern (SECO) reported this morning that Swiss Gross Domestic Product will expand 1.5 percent in 2016 and 1.8 percent in 2017 despite the post-Brexit fallout. The main reason for this optimistic projection is a gradual recovery of the Eurozone, especially Germany, and improving Swiss exports. It is worth mentioning that SECO is not alone in such a positive economic forecast for growth, because earlier this week the Swiss National Bank (SNB) issued a very similar report arguing, that its two-pillar strategy (negative interest rates and pledge to intervene in currency markets) is working well so far.
Let's now take a look at the USD/CHF technical picture in the daily time frame. We can clearly see that the market keeps trading below the golden trend line and currently it is in horizontal congestion zone between the levels of 0.9442 - 0.9958. This sideways market can regain the trend only after important fundamental event like this week FED interest rate decision, so all traders should wait for the FED meeting concluions.
