Switzerland data was released during the European morning, but the EUR/CHF peg prevents the market from any big jitter on account of the figures. 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).
Italy’s industrial output was also released today, with a monthly drop of -1.4% (previous +0.8%) in July, and annualized drop from -6.7% (revised from 6-9%) to -8.2%.
“Scope remains for the move to the top of the short term channel at 1.2513, where ideally we will see failure”, wrote Commerzbank analyst Karen Jones, pointing to support at 1.2290/1.2325.