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4 Sep 2015
USD/CHF: CHF falls further as Swiss deflation deepens
FXStreet (Mumbai) - The Swiss currency continues to get hammered by the US dollar in the European morning, driving USD/CHF to fresh session highs, as the Swiss franc ran through fresh supply after the release of Switzerland’s CPI data.
USD/CHF rises despite weaker USD
Currently, the USD/CHF pair trades 0.20% higher at fresh session highs of 0.9751, on its way to retest 2-week highs reached at 0.9778 on Thursday. The bid tone around the USD/CHF pair keeps growing bigger as the Swiss franc was knocked down by softer CPI figures, with the economy diving deeper in to deflation.
The consumer prices in Switzerland came in at a negative 1.4% in August compared to the same period a year ago, matching the market consensus of a 1.4% drop. On monthly basis, the CPI posted a 0.2% decrease in the reported month, tightening the pace of decline of 0.6% booked in July.
Meanwhile, the US dollar remains largely subdued against its major counterparts, with the key US labour market report in focus. The US dollar index, a virtual gauge of greenback’s relative strength trades -0.07% lower at 96.25.
USD/CHF Technical Levels
To the upside, the next resistance is located at 0.9778 (Sept 3 High) levels and above which it could extend gains 0.9800 levels. To the downside, immediate support might be located at 0.9699 (Today’s Low) levels and below that at 0.9640 (Aug 19 Low) levels.
USD/CHF rises despite weaker USD
Currently, the USD/CHF pair trades 0.20% higher at fresh session highs of 0.9751, on its way to retest 2-week highs reached at 0.9778 on Thursday. The bid tone around the USD/CHF pair keeps growing bigger as the Swiss franc was knocked down by softer CPI figures, with the economy diving deeper in to deflation.
The consumer prices in Switzerland came in at a negative 1.4% in August compared to the same period a year ago, matching the market consensus of a 1.4% drop. On monthly basis, the CPI posted a 0.2% decrease in the reported month, tightening the pace of decline of 0.6% booked in July.
Meanwhile, the US dollar remains largely subdued against its major counterparts, with the key US labour market report in focus. The US dollar index, a virtual gauge of greenback’s relative strength trades -0.07% lower at 96.25.
USD/CHF Technical Levels
To the upside, the next resistance is located at 0.9778 (Sept 3 High) levels and above which it could extend gains 0.9800 levels. To the downside, immediate support might be located at 0.9699 (Today’s Low) levels and below that at 0.9640 (Aug 19 Low) levels.