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.