10 Feb 2015
Swiss CPI may go deeper in negative territory in months ahead – GrowthAces
FXStreet (Barcelona) - The Growth Aces Research Team expects Swiss CPI to delve into negative territory in the coming months, which might increase risks for an SNB intervention into FX space.
Key Quotes
“Consumer prices fell in Switzerland by 0.5% yoy in January, in line with our forecast. That compared with declines of 0.3% in December and 0.1% in November.”
“In the middle of January, the Swiss National Bank surprised markets by dropping its cap of 1.20 for the CHF against the EUR. The CHF has since strengthened sharply, increasing deflationary pressures in the Swiss economy.”
“Switzerland's unemployment rate (adjusted for seasonal factors) was unchanged at 3.1% in January.”
“Swiss CPI will probably go deeper into negative area in the coming months. The SNB is still likely to intervene on foreign exchange market or even cut rates further.”
Key Quotes
“Consumer prices fell in Switzerland by 0.5% yoy in January, in line with our forecast. That compared with declines of 0.3% in December and 0.1% in November.”
“In the middle of January, the Swiss National Bank surprised markets by dropping its cap of 1.20 for the CHF against the EUR. The CHF has since strengthened sharply, increasing deflationary pressures in the Swiss economy.”
“Switzerland's unemployment rate (adjusted for seasonal factors) was unchanged at 3.1% in January.”
“Swiss CPI will probably go deeper into negative area in the coming months. The SNB is still likely to intervene on foreign exchange market or even cut rates further.”