1. Home
  2. /News
  3. /CHF to USD Rate Faces the 200 SMA on the Way to 0.90, As Swiss Inflation Falls

CHF to USD Rate Faces the 200 SMA on the Way to 0.90, As Swiss Inflation Falls

Skerdian Meta•Tuesday, December 3, 2024•2 min read

The CHF to USD rate turned volatile again yesterday, bouncing 1 cent higher but stopped at the 200 daily SMA, however, the USD/CHF pair will likely reach 0.90 soon as inflation turns negative in Switzerland.

Prices continue to decline in Switzerland

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewFCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTCUSD 100Visit Broker
🥈Read ReviewFSCA, FSC, ASIC, CySEC, DFSAUSD 5Visit Broker
🥉Read ReviewCySEC, MISA, FSCAUSD 25Visit Broker
4Read ReviewASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBUSD 200Visit Broker
5Read ReviewASIC, FCA, CySEC, SCBUSD 100Visit Broker
6Read ReviewFCA, FSCA, FSC, CMAUSD 200Visit Broker
7Read ReviewBVI FSCUSD 1Visit Broker
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker

Over the past two months, USD/CHF has shown a notable recovery, climbing approximately 5.5 cents before pulling back by 1.5 cents from its November peak. Yesterday, the pair found support around the 0.88 level, coinciding with dovish sentiment from the Swiss National Bank (SNB). Weekend remarks by SNB Chairman Martin Schlegel highlighted the prolonged challenges in Switzerland’s industrial sector, with activity remaining significantly weaker than anticipated.

USD/CHF Chart Weekly – The 100 SMA Holds As SupportChart USDCHF, D1, 2024.12.03 15:13 UTC, MetaQuotes Ltd., MetaTrader 5, Demo

Adding to this, Swiss inflation remains subdued, as confirmed by November’s negative inflation data released today. This economic backdrop is likely to support further upward movement in the USD/CHF pair. Meanwhile, challenges in the Eurozone have also played a role in driving this trend. A decline in services activity, as reflected in November’s PMI data, underscores the region’s economic struggles. These issues heighten the likelihood of a Eurozone recession, potentially pressuring the European Central Bank (ECB) to implement rapid interest rate cuts, further influencing Swiss economic conditions.

Switzerland CPI Inflation Report for November

  • Headline Inflation (CPI):
    • November’s Consumer Price Index (CPI) increased by 0.7% year-over-year, slightly below the expected 0.8%.
    • This represents an uptick from October’s CPI reading of +0.6%, signaling a modest rise in price pressures.
  • Core CPI:
    • Core CPI, which excludes volatile items like food and energy, rose by 0.9% year-over-year, up from +0.8% in October.
    • The increase in core inflation highlights persistent underlying price pressures despite overall moderate headline inflation.
  • Key Observations:
    • Inflation remains well below the Swiss National Bank’s (SNB) target range, reinforcing Switzerland’s status as a low-inflation economy.
    • The modest inflation growth could reflect subdued consumer demand and strong deflationary forces in certain sectors.

Swiss inflation remains well below the 2% target, but the Swiss National Bank (SNB) is likely to feel compelled to lower interest rates later this month due to the franc’s continued strength, particularly against the euro. While the pressure from rising prices has eased, the SNB remains cautious, aiming to prevent inflation from falling too low and potentially creating additional economic challenges.

USD/CHF Live Chart

USD/CHF
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
img
Key Focus: US January CPI Inflation and Its Market Impact on USD, Cryptos
3 hours ago
img
Forex Signals Brief Feb 12: Attention on US Inflation and Tariffs Today!
5 hours ago
img
GBPUSD Above 1.24, FTSE Record High After BOE Gov Bailey Speech
22 hours ago
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Add 3442

Add 3440