USD/CHF jumps to 0.9070 as Switzerland’s soft CPI weakens Swiss Franc
|- USD/CHF climbs to 0.9070 after the release of the softer-than-expected Swiss CPI report.
- Swiss soft inflation data has boosted expectations of more rate cuts by the SNB.
- The US Dollar exhibits weakness ahead of the US NFP report.
The USD/CHF pair rallies to 0.9070 in the European session on Thursday. The Swiss Franc asset strengthens as softer-than-expected Switzerland Consumer Price Index (CPI) data for March has boosted expectations of one more interest rate cut by the Swiss National Bank (SNB).
Among developed economies, the SNB has led the rate-cut cycle after reducing interest rates by 25 basis points (bps) to 1.5% in the monetary policy meeting on March 21.
Federal Statistical Office of Switzerland has reported that the monthly consumer price inflation remains stagnant while investors anticipated an increase of 0.3%. In February, price pressures rose by 0.6%. Annually, inflationary pressures surprisingly grew at a slower pace of 1.0%. Economists expected the consumer price inflation to grow at a higher pace of 1.3% after rising 1.2% in February.
Meanwhile, the US Dollar has extended its downside as weak United States Services PMI for March has dented the economic outlook. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, falls to 104.12.
The Institute of Supply Management (ISM) reported that the Services PMI fell to 51.4 from expectations of 52.7 and the former reading of 52.6. Also, subindexes such as New Orders and Prices Paid eased significantly.
Going forward, investors will focus on the US Nonfarm Payrolls (NFP) data for March, which will be published on Friday. US employers are anticipated to have recruited 200K workers, lower than the former reading of 275K.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.