CHF Higher On EUSwiss Trade Dispute; US Durable Goods


Market Recap

My Excel crashed yesterday before I saved the tables and so I only have the above table, which is from Bloomberg. Unfortunately, when they calculate the change from the previous day Im pretty sure that they use the close of the previous day, not 24 hours before. This results in exceptionally small changes because were only talking about eight hours or so of trading and does not reflect the bulk of the movement of the day. My apologies.

Unusually, CHF was at the top of the list not because of any riskoff mood in fact, stocks were generally higher but rather because of developments in Switzerland. The government announced that it will not sign the draft EUSwiss Institutional Framework Agreement that was reached in 2018, bringing to a close seven years of negotiations. According to the Swiss government, the institutional agreement was intended to safeguard Switzerlands access to the European single market and to provide a basis for expanding that access by introducing the dynamic adoption of developments in EU law. However, there were several points of disagreement, most notably the EUs Citizens Rights Directive CRD, wage protection, and state aid.

Without the agreement, EUSwiss relations will continue to be governed by around 120 bilateral accords. However the EU has previously stated that if this agreement isnt signed, these bilateral accords may not be renewed. That would throw into question Switzerlands trade relationship with the EU, which takes 39 of…


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