Trade Desk Thoughts - Swiss PPI

Swiss PPI Actual -0.5%, Expected -0.2%, Previous 0.5%

Release Explanation: The PPI measures the rate of inflation of manufacturers when purchasing Goods and Services; the rate of Inflation at the factory Gate. An increase in the price of raw Goods and services usually gets passed on to the consumer, therefore this is the first stage on Retail Inflation.

Trade Desk Thoughts: The Producer price index in Switzerland decreased August by 0.5%. In July, the PPI rose to a record high, driven higher mainly by the energy components. In August, analysts had expected the first negative read since January 2007. Later this week the SNB is expected to leave the interest rate unchanged at 2.75%

Forex Technical Reaction: The two releases from Switzerland went unnoticed in the currency market. Since the Asian session begun, the swissy (Usd/Chf) loss 70 pips and is now trading under TheLFB S3 (1.1150). Against the euro, the Swiss Franc strengthened 70 pips.

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