During early deals on Tuesday, the Swiss franc edged higher against its U.S., European and Japanese counterparts as Switzerland's economy exited recession in the third quarter as the gross domestic product grew after declines in past four quarters. The franc thus climbed to a 5-day high against the yen.
The Swiss economy has emerged from the deep recession faster than many had thought," ING economist Julien Manceaux said. Recovering European demand and a stabilized Swiss Franc possibly allowed net exports to contribute positively to growth in the third quarter, the economist noted.
Gross domestic product or GDP climbed 0.3% sequentially in the third quarter after declining at the same pace in the second quarter. That was the first rise in GDP in five consecutive quarters. Growth in the third quarter was in line with economists' expectations.
On an annual basis, GDP fell 1.3%, slower than the 2.4% drop recorded in the second quarter and a 1.5% decline economists' had forecast. GDP has been falling since the fourth quarter of 2008. The year-on-year decline illustrates that things are still far from normal, the ING economist noted. The GDP deflator fell 0.5% year-on-year following 0.8% rise in the second quarter.
Against the US dollar, the Swiss franc gained ground after hitting a low of 1.0078 at 12:15 am ET Tuesday. The franc is currently trading at 1.0007 against the dollar with 0.998 seen as the next target level. The dollar-franc pair closed Monday's North American session at 1.0055.
The franc edged higher against the European currency during early deals on Tuesday. At 3:50 am ET, the franc climbed to 1.5073 against the euro, compared to 1.5087 hit late New York Monday. The next upside target level for the franc is seen around 1.504.
Markit Economics reported today that the Eurozone Manufacturing Purchasing Managers' Index stood at a seasonally adjusted 51.2 in November, revised up from 51 estimated preliminarily. Economists had expected the preliminary estimate to be retained, after the 50.7 reading in October. A reading above 50 indicates expansion, while one below 50 suggests contraction.
Earlier in the day, Germany's Federal Statistical Office announced that the retail sales in real terms increased a seasonally and calender adjusted 0.5% month-on-month in October, compared to the 0.2% decline in the preceding month. Economists expected an increase of 0.4%. A year earlier, retail sales were down 1%.
The Swiss currency that reached a high of 1.6483 against the British pound at 1:50 am ET Tuesday weakened thereafter. The franc is presently trading at 1.6552 against the pound, compared to Monday's closing value of 1.6534. If the franc falls further, 1.668 is seen as the next target level.
UK house prices rose 2.7% on a yearly basis in November, faster than the 2% increase in October and consensus forecast of 2.4%, the Nationwide Building Society said today. Month-on-month, house prices climbed 0.5%, the same rate as in October. Economists were looking for a monthly increase of 0.4%.
The Swiss franc that closed Monday's New York deals at 86.00 against the Japanese yen hit a 5-day high of 87.09 at 3:50 am ET Friday. On the upside, 87.9 is seen as the next target level for the Swiss currency.
Today, the Policy Board of the Bank of Japan unanimously decided to hold its key interest rate unchanged at 0.1% in an unscheduled monetary policy meeting. The central bank also decided to further enhance easy monetary conditions by introducing a new fund-supplying operation to encourage a further decline in longer-term interest rates.
From the U.S., the results of the manufacturing survey of the Institute for Supply Management, which are based on data compiled from purchasing and supply executives nationwide, are due out at 10 am ET today. Economists expect the index to show a reading of 54.8 for November.
At the same time, the Commerce Department's construction spending report is set to be released. The report is expected to show a 0.4% decline in spending for October.
Data on Pending Home Sales, which is a leading indicator of housing market activity released by the National Association of Realtors, is also due out at 10 AM ET. The index is expected to edge down 0.5% in October.
Philadelphia Federal Reserve Bank President Charles Plosser is scheduled to deliver a speech on the economic outlook to a seminar in Rochester at 12:20 PM ET.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.