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. See our updated Privacy Policy here.

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
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/stMPuq0VXR
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
21 Consecutive Months of Swiss Deflation Comes to an End

21 Consecutive Months of Swiss Deflation Comes to an End

Benjamin Spier, Technical Strategist

THE TAKEAWAY: 21 months of Swiss deflation comes to an end in July -> SNB currency devaluation may finally be affecting local prices -> Little Franc reaction

Want to trade with proprietary strategies developed by FXCM? Find out how here.

The annual change in Swiss consumer prices stopped declining in July for the first time in twenty one months, as a policy of currency devaluation may finally be affecting local prices.

Consumer prices were unchanged from July 2012, higher than expectations for consumer prices to indicate 0.1% deflation for the second consecutive month. Consumer prices declined 0.4% on a monthly basis in July, according to the Swiss Federal Statistics Office.

The Swiss National Bank cut its price forecast in June to -0.3% for 2013 and 0.2% for 2014. The SNB has maintained a 1.20 cap in Franc trading against the Euro, to stem gains in the local currency following currency inflows during the Euro-zone debt crisis. The continued sale of the Franc in Forex markets may have driven local prices higher in Switzerland, if not for the constant deflation seen in the Swiss economy. However, if a change in prices in the upcoming months signals building inflation, the SNB may reconsider its Franc devaluation policy.

Therefore, the higher than expected change in consumer prices should have been Franc positive. However, the Franc continued to trade around 1.2320 against the Euro following the CPI release. The 1.24 line may continue to provide resistance, and a rising trend line from April may provide support around 1.2288.

Also reported in Switzerland today, the SNB’s foreign currency reserves was reported at 434.9B in July, only slightly higher than the 434.8B seen in June. Also, the SECO Consumer Confidence (Jul) was reported at -9 for July, disappointing expectations for -1.

New to Forex? Watch this video

EURCHF Daily: August 7, 2013

21_Consecutive_Months_of_Swiss_Deflation_Comes_to_an_End_body_eurchf.png, 21 Consecutive Months of Swiss Deflation Comes to an End

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

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

DISCLOSURES