News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/CzqDUXRj6r
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.42% 🇨🇦CAD: 0.29% 🇦🇺AUD: 0.23% 🇯🇵JPY: -0.05% 🇪🇺EUR: -0.12% 🇨🇭CHF: -0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0zNKmfjVB1
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-25
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: US 500: 0.38% Wall Street: 0.10% Germany 30: -0.05% FTSE 100: -0.20% France 40: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/B1qWJzbETV
  • $GBPUSD picking up slightly, while $EURGBP slides to intra-day lows https://t.co/fFLq52gV8E
  • Italian PD Chief Zingaretti says the idea of a government with Conte as PM who gets backing is the best solution $EUR
  • Missed today's Cross-Market Weekly Outlook webinar? See the recording here: US Dollar May Rise as Gold Drops on Fed Policy Meeting - https://t.co/olkUupAf3i #Dollar #FOMC #Fed
  • Heads Up:🇩🇪 Bundesbank Mauderer Speech due at 10:45 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-25
  • UK PM Johnson says looking at relaxing some measures before mid-Feb - Sky News
  • German Economy Ministry expects economy to reach pre-crisis levels in Mid-2022
Forex News: Franc Weakens as Deflation Strengthens in November

Forex News: Franc Weakens as Deflation Strengthens in November

Benjamin Spier, Technical Strategist

THE TAKEAWAY: Consumer prices drop 0.4% from November 2011 -> Statistics office predicts slight inflation in 2013 -> Franc weakens

The Swiss economy continued to see deflation for the 15th consecutive month in November. Consumer prices fell 0.4% from November of 2011, much lower than both the expected 0.1% drop in prices and October’s 0.3% deflation. Consumer prices are 0.3% lower than October according to the Federal Statistics Office.

The statistics office has predicted a 0.7% decline in prices for 2012 and 0.2% inflation in 2013. The Eurozone debt crisis encouraged capital flows into the Franc as investors fled from instability in the single currency, pushing the Swiss currency higher. This weighed on the price of imported goods in terms of the domestic currency, contributing to deflation. The Swiss National Bank has maintained a 1.200 floor in EURCHF trading to prevent the Franc from strengthening further, which is harmful to Swiss exports.

The Euro gained against the Swiss Franc following the announcement of deflation, possibly on the prospect that without any signs of inflation, the chance increase that the SNB will step up efforts to weaken the Franc. EURCHF is currently trading slightly above 1.2100, and resistance could be provided at the yearly high of 1.2183, and support could continue at 1.2033.

EURCHF Daily: December 6, 2012

Franc_Weakens_as_Deflation_Strengthens_in_November_body_eurchf.png, Forex News: Franc Weakens as Deflation Strengthens in November

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES