Swiss Franc eases within range following soft Swiss inflation figures

USD/CHF ticks up from session lows at 0.8080 as Swiss inflation eased beyond expectations in June.
The Swiss Franc remains trading in a range, with the one-year high of 0.8139 at a short distance.
Later on the day, a strong US Nonfarm Payrolls report might boost the USD to fresh highs.

Guillermo Alcala FXStreet

The Swiss Franc (CHF) has pulled back from session highs against the US Dollar (USD) on Thursday, following the release of softer-than-expected Swiss Consumer Price Index (CPI) figures. The USD/CHF pair has ticked up from intraday lows at 0.8080, although it remains trading within the weekly range, not far from one-year highs at the 0.8140 area.

Swiss consumer inflation slowed down to a 0% monthly growth in June from the 0.2% rise seen in May. This is a sharper slowdown than the 0.1% anticipated by the market consensus. Likewise, yearly inflation eased to 0.5%, from the 0.6% year-on-year rate seen in May.

These figures practically confirm that the Swiss National Bank (SNB) will keep its benchmark interest rate unchanged, at the current 0% level for the rest of the year and probably well into 2027. With investors ramping up bets on Federal Reserve (Fed) rate hikes, the low SNB interest rates are likely to act as a headwind for CHF rallies.

Later on the day, the focus will shift to the US Nonfarm Payrolls (NFP) report, which is expected to show that the US economy created 110K net jobs in June, following three months of strong job growth. Investors are likely to analyse these figures from a monetary policy perspective, looking for confirmation of a Fed rate hike in September. The risk is skewed to the upside for the US Dollar.

Economic Indicator

Consumer Price Index (MoM)

The Consumer Price Index (CPI), released by the Swiss Federal Statistical Office on a monthly basis, measures the change in prices of goods and services which are representative of the private households’ consumption in Switzerland. The CPI is the main indicator to measure inflation and changes in purchasing trends. The MoM figure compares the prices of goods in the reference month to the previous month. Generally, a high reading is seen as bullish for the Swiss Franc (CHF), while a low reading is seen as bearish.

Economic Indicator

Consumer Price Index (YoY)

The Consumer Price Index (CPI), released by the Swiss Federal Statistical Office on a monthly basis, measures the change in prices of goods and services which are representative of the private households’ consumption in Switzerland. The CPI is the main indicator to measure inflation and changes in purchasing trends. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Swiss Franc (CHF), while a low reading is seen as bearish.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.