The trade surplus rebounded slightly in September to 4.073 billion Swiss Francs from a downwardly revised balance of 4.833 billion Francs (4.009) the previous month.

Exports gained 6.0 percent in September to 23.972 billion Francs, the highest level since June of this year. Imports rose 12.4 percent to 19.899 billion Francs, to their most robust level since 23.998 billion in June.

Quarterly data tell a different story, however, with the third quarter surplus falling to 12.4 billion Swiss Francs from 16.1 billion in the second quarter and 17.0 billion during the first three months of the year.

That was the result of exports falling 9.5 percent during the quarter to 66.1 billion Francs from 73.0 billion the previous quarter. Imports slipped 5.7 percent in the most recent quarter to 53.6 billion from 56.8 billion in the quarter before which was a 9.1 percent decrease from the first three months.

Today's modest improvement in the surplus masks a wider deterioration in overall trade as shown by the quarterly data. Clearly, the lack of progress in trade talks with the Trump administration is taking a toll as 39 percent tariffs are still in place.

The merchandise trade balance measures the difference between the total value of Swiss merchandise exports and imports. The focus is on the balance of trade in goods, excluding precious metals, gemstones, works of art and antiques. This is provided in unadjusted and seasonally adjusted measures for cash and volume.

Changes in the level of imports and exports along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the Swiss franc in the foreign exchange market. Switzerland's major trading partners include Germany, France, Italy and the United States. While Switzerland still exports large amounts of traditional products such as chocolate and watches, more than half of Swiss exports are in mechanical and electrical engineering and chemicals today. A positive trade balance indicates a trade surplus while a negative balance represents a trade deficit. Trade surpluses indicate that foreigners are buying more Swiss goods, which are typically paid for in Swiss Francs. This translates into greater demand for the currency and upward pressure on the value of the Franc. However, if the balance is a deficit, Swiss consumers are buying goods from trading partners which translates into higher demand for foreign currencies placing downward pressure on the value of the Franc.