Investing.com – The Swiss franc retreated from an 11-week high against the U.S. dollar on Tuesday, after official data showed that Swiss consumer price inflation fell more than expected in June.
USD/CHF hit 1.0564 during European morning trade, the pair's lowest since April 16; the pair subsequently consolidated at 1.0614, shedding 0.31%.
The pair was likely to find support at 1.0501, the low of April 14, and resistance at 1.0788, the high of July 1.
Earlier in the day, official data showed Swiss consumer price inflation fell 0.4% in June, after declining 0.1% in May.
Analysts had expected an increase of 0.1% in June.
It appears likely that the Swiss central bank will decide to once again intervene in currency markets in the wake of the report.
Three weeks ago the bank said that the “deflationary risk in Switzerland has largely disappeared”, but added that if current “downside risks” from the turmoil in the EU materialize “via an appreciation of the Swiss Franc and lead to a renewed threat of deflation,” the SNB would “take all the measures necessary to ensure price stability”.
Meanwhile, the Swiss franc was down against the euro, with EUR/CHF gaining 0.06% to hit 1.3357.
Later Tuesday the U.S. was to produce a closely watched report on its services sector.
USD/CHF hit 1.0564 during European morning trade, the pair's lowest since April 16; the pair subsequently consolidated at 1.0614, shedding 0.31%.
The pair was likely to find support at 1.0501, the low of April 14, and resistance at 1.0788, the high of July 1.
Earlier in the day, official data showed Swiss consumer price inflation fell 0.4% in June, after declining 0.1% in May.
Analysts had expected an increase of 0.1% in June.
It appears likely that the Swiss central bank will decide to once again intervene in currency markets in the wake of the report.
Three weeks ago the bank said that the “deflationary risk in Switzerland has largely disappeared”, but added that if current “downside risks” from the turmoil in the EU materialize “via an appreciation of the Swiss Franc and lead to a renewed threat of deflation,” the SNB would “take all the measures necessary to ensure price stability”.
Meanwhile, the Swiss franc was down against the euro, with EUR/CHF gaining 0.06% to hit 1.3357.
Later Tuesday the U.S. was to produce a closely watched report on its services sector.