Investing.com – The U.S. dollar tumbled to a four-day low against the Swiss franc on Wednesday, after Swiss consumer price inflation rose more-than-expected in March, raising expectations a euro zone rate rise will give the Swiss room to tighten too.
USD/CHF hit 0.9160 during European late morning trade, the pair’s lowest since March 31; the pair subsequently consolidated at 0.9171, tumbling 0.88%.
The pair was likely to find support at 0.9125, the low of March 31 and resistance at 0.9294, the days high and a three-day high.
The Federal Statistics Office said Swiss consumer prices rose 0.6% compared with February, taking the annual inflation rate in March to 1.0% from 0.5% the previous month and well above the 0.6% forecast by analysts.
The report said the increase was primarily due to higher prices for clothes and shoes, as well as more expensive oil, which rose 4.9% on the month.
Core inflation, which excludes volatile components such as food and fuel costs, jumped to 0.6% in March from 0.1% the previous month.
The Swissie was also higher against the euro, with EUR/CHF shedding 0.33% to hit 1.3115.
On Tuesday, the minutes of the Federal Reserve’s March policy meeting indicated that policymakers believed the U.S. economic recovery was gaining momentum but highlighted the potential negative impact of rapidly rising commodity prices on inflation expectations, consumer spending and business investment.
USD/CHF hit 0.9160 during European late morning trade, the pair’s lowest since March 31; the pair subsequently consolidated at 0.9171, tumbling 0.88%.
The pair was likely to find support at 0.9125, the low of March 31 and resistance at 0.9294, the days high and a three-day high.
The Federal Statistics Office said Swiss consumer prices rose 0.6% compared with February, taking the annual inflation rate in March to 1.0% from 0.5% the previous month and well above the 0.6% forecast by analysts.
The report said the increase was primarily due to higher prices for clothes and shoes, as well as more expensive oil, which rose 4.9% on the month.
Core inflation, which excludes volatile components such as food and fuel costs, jumped to 0.6% in March from 0.1% the previous month.
The Swissie was also higher against the euro, with EUR/CHF shedding 0.33% to hit 1.3115.
On Tuesday, the minutes of the Federal Reserve’s March policy meeting indicated that policymakers believed the U.S. economic recovery was gaining momentum but highlighted the potential negative impact of rapidly rising commodity prices on inflation expectations, consumer spending and business investment.