FXstreet.com (Barcelona) - Switzerland data came out today, showing declining annualized inflation from -1.1% to -0.7% in July (better than the -0.8% consensus). While the EUR/CHF peg remains strong, the USD/CHF fell below 0.9700 handle.
The unemployment rate remains at 2.7% as expected in July, and the CPI inflation report dropped less than expected on the month, by -0.5% in July vs -0.6% consensus. The annualized data improved from -1.1% to -0.7% (vs -0.8% consensus). Due to SNB’s intervention at the FX market, foreign currency reserves rose from CHF 364.9B to CHF 406.5B in July.
The USD/CHF found a low at 0.9666 and is sticking around 0.9670 area during the rest of the European session. “We look for a slide back to the base of the 2 month uptrend at 0.9610”, wrote Commerzbank analyst Karen Jones, expecting also 0.9595 support to provoke recovery. Meanwhile, the market will remain directly offered while capped by 0.9777.
The unemployment rate remains at 2.7% as expected in July, and the CPI inflation report dropped less than expected on the month, by -0.5% in July vs -0.6% consensus. The annualized data improved from -1.1% to -0.7% (vs -0.8% consensus). Due to SNB’s intervention at the FX market, foreign currency reserves rose from CHF 364.9B to CHF 406.5B in July.
The USD/CHF found a low at 0.9666 and is sticking around 0.9670 area during the rest of the European session. “We look for a slide back to the base of the 2 month uptrend at 0.9610”, wrote Commerzbank analyst Karen Jones, expecting also 0.9595 support to provoke recovery. Meanwhile, the market will remain directly offered while capped by 0.9777.
