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Swiss CPI hitting projections - implications for SNB and EURCHF
The latest Swiss CPI came in right on target, which is certainly a sigh of relief for the SNB given the global inflation backdrop. It definitely reinforces the idea that they're still in a good spot to potentially ease if conditions warrant, or at least hold steady without feeling undue pressure to hike. I've been watching $EURCHF carefully, and with it hovering around 0.93891, the lack of an upside surprise in Swiss inflation could provide a bit of a floor for further dips. If the SNB does hint at any further dovishness, we could see some pressure building back up towards 0.9400, but for now, it feels like we're settling into a consolidation phase. Will be looking at their next comments closely for any hints on their reaction function.
1 comments · 36 points
It's interesting how closely tied the SNB's actions are to inflation, especially compared to other central banks. Does this CPI number make a rate cut more likely or less likely in the short term, from your perspective?