30 July 2003, 09:51  Swissie eases vs dollar on hopes of solid US data

ZURICH, July 30 - The Swiss franc eased versus the dollar in early European trade on Wednesday, as the greenback was supported by hopes of a recovering U.S. economy, despite an unexpected drop in U.S. consumer confidence on Tuesday. The U.S. consumer confidence index dropped to 76.6 in July from 83.5 a month ago, while economists had expected a rise to 85.0. "Tuesday's drop in U.S. consumer confidence did not have a lasting impact on dollar/franc," analysts at UBS said in a daily markets bulletin. "One negative surprise is not good enough to spoil the party." UBS said the market was anticipating U.S. second-quarter gross domestic product data due on Thursday, which economists expect to rise 1.5 percent. On Friday, U.S. jobs data and the Institute for Supply Management July's manufacturing index will give further signs on the state of the world's largest economy. The dollar was trading at 1.3524/29 Swiss francs after 1.3450/56 francs on Tuesday evening. The euro changed hands virtually unchanged at 1.5474/79 francs, after 1.5473/78 francs in late Tuesday trade. In Switzerland, market players will keep an eye on Swiss consumer prices. Economists expect a modest year-on-year increase ranging from 0.4 percent to 1.1 percent, with the average of nine forecasts at 0.8 percent. The average month-on-month forecast was -0.3 percent. The closely watched KOF leading indicator for June is also due to be released at 0930 GMT which is expected to point to continued weak demand for the stagnating economy.

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