Forex: USD/CHF dives to 0.9412 on Eurozone and US inflation data
_iNVEZZ.com Tuesday July 16th:_ The US dollar’s uptick against the Swiss franc which started early in the Asian session today has continued unabated into American trading, with the pair descending to a four-day low at 0.9412 after the US inflation update was released.
Sales in June were up in 11 of 21 industries, representing about 57 percent of the manufacturing sector. The CPI increased in the month by a seasonally adjusted 0.5 percent to mark the biggest increase since February, with the cost of gasoline, housing, medical care, clothing and food all rising. May’s CPI was 0.1 percent. Year-on-year prices rose by 1.8 percent for the June year, above expectations for a 1.7 percent gain and up from 1.4 percent in May.
Over the past 12 months, the core rate of inflation has risen just 1.6 percent, in line with analysts’ expectations and the lowest rate in the past two years.
Industrial production also came out today, up 0.3 percent in June after having been unchanged in May and exceeding expectations for a 0.2 percent rise.
Earlier today the Swiss franc took vicarious support from strong Eurozone consumer inflation data. According to Eurostat, the Eurozone Consumer Price Index for June y/y rose 1.6 percent, matching expectations and up from May’s 1.4 percent.
The monthly reading was unchanged at 0.1 percent, again matching expectations. Core-CPI, which excludes food, energy, alcohol and tobacco, costs, came out steady at 1.2 percent for June y/y, also in line with forecasts.