Swiss National Bank's Tschudin: GDP growth exceptionally strong in Q2

Swiss National Bank member Petra Tschudin announced that the country's GDP experienced an exceptionally strong increase in the second quarter. This growth was primarily driven by the booming chemicals and pharmaceutical sectors. A weaker Swiss Franc also contributed positively to the situation. The bank anticipates moderate growth in the upcoming quarters, with additional support likely coming from overseas stimuli.

The trade policy environment and shifts in exchange rates add a layer of uncertainty to the outlook. Positive trends in broad-based growth have persisted into the third quarter. The greatest risk to Switzerland's economy in the near term remains the state of the global economy, particularly the Middle East situation. There is no significant surge in the Swiss Franc carry trade.

Analyst Dhwani, based in Mumbai, observed that the Australian dollar (AUD) is weakening towards 0.7000 following the release of the August jobs report, which indicated that the unemployment rate increased to 4.6% compared to the expected 4.5%. The employment change, however, exceeded estimates, reaching 39.5K. Traders are also anxious about the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping.

In terms of forex, USD/JPY retreated from three-week highs and hovered near 158.00 in the Asian session. The US dollar maintained overnight gains, reaching a two-month high amidst expectations of hawkish Federal Reserve policies and higher US bond yields. Gold prices are in a one-week low range, having dipped during the Asian trading session, as investors wait to see if there will be any major announcements about rare earths, technology restrictions, or an extension of the current US-China truce.

The Swiss National Bank maintained its key interest rates at 0% as expected. The bank's latest monetary policy review revealed that it anticipates Switzerland's inflation rate to be 0.7% in 2026, slightly higher than the previous forecast of 0.6%. The main economic risk for Switzerland is seen as stemming from developments in the global economy.

The Bank of Japan recently raised its short-term interest rate target to 1.25% from 1.00%, in a 7-2 vote, reinforcing expectations of a normalization of monetary policy.