Trade Desk Thoughts - Swiss CPI

Swiss CPI Actual -0.3%, Expected -0.1%, Previous -0.4%

Release Explanation: CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore gives an overall read of Inflationary pressures. It is the most widely used Inflation indicator of Central Banks, Institutions, and Governments. It is used to calculate Cost of Living numbers for Government programs. Each regional Central Bank will have their own CPI Target rate, and each will differ in line with the way they individually want to control the aspects of their own economies.

Trade Desk Thoughts: In August, the Swiss CPI read shows the economy is experiencing deflation for the time being, despite the global tendency of huge price increases. The released number of -0.3%, is smaller than the market expectation of -0.1% and almost the same as the number released last month of -0.4%. The year-over-year read stands at 2.9%, while in August 2007 the CPI had risen only 0.4% from one year earlier.

Forex Technical Reaction: The Swissy had a weak reaction to the GDP and CPI releases. The pair moved 10 pips following the release, after in the Asian session it just hovered near the high of the previous session

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