Swiss Economic Outlook – CHF Forecast
July 6th, 2009 Posted in Euro-Zone, In-Depth Analysis
Friday, Switzerland’s Federal Statistical Office said the consumer price index, or CPI, dropped 1% in June, defying economists’ expectations for no growth. The CPI forecast was to fall 1.1%. As a result, the U.S Dollar fell more than 1% against the Swiss franc today, extending its further losses amid broad-based weakness.
However, traders remained cautious about more intervention by the Swiss National Bank (SNB) to weaken its domestic currency. The SNB has repeatedly intervened in the market this week, thus pushing the Swiss franc to session lows against the Dollar and EUR on Thursday. The CHF pared losses vs. the Dollar, however, after the SNB declined to comment on the latest move. The bullish momentum may continue into the next trading week and the Swiss franc might reach 1.0950 vs. the U.S Dollar.
Start trading with Natalie R. now:
Tags: CHF, CHF forecast, CHF trading, Consumer Price Index, CPI, Foreign Exchange, Forex, forex blog, Forex Forecast, Forex Strategies, Forex Trading, fx, FX trading, Inflation, LIBOR, Swiss Franc, Swiss Franc Forecast
