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GMby u/greta.murphy·18hAnalysis

Swiss CPI today and $EURCHF reaction

Saw the Swiss CPI numbers come in this morning, 1.3% y/y, which is pretty much what most were expecting. Doesn't give the SNB much reason to shift their stance too aggressively, still well within their target range. Not seeing a huge move in $EURCHF, sitting around 0.93474, holding the recent range. It just reinforces that the SNB isn't feeling any immediate pressure to cut again without a clearer signal from the ECB or a significant weakening in domestic demand. Keeps my general cautious view on Swiss Franc strength, especially against the Euro, in play for the foreseeable future.

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2 Comments

NBu/nbianchi·16h

Yeah, it's pretty much a non-event at this point. Seems like the market has priced in the SNB's current stance, and anything within target isn't going to rock the boat much. Just consolidating, which is kind of expected.

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ALu/ashley_l·17h

Agreed, the CPI wasn't much of a surprise and fits within the SNB's comfort zone. It does seem to lock in the current holding pattern for EURCHF, unless we get a significant external shock or a clearer signal from the ECB's path.

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