Forex: USD/CHF: Swiss Producer and Import Price Index down 0.1%

on Dec 13, 2013
Updated: Oct 21, 2019
Listen Friday, December 13th:_ Today the price initially reached an intraday high of 0.8905, but subsequently fell to an intraday low of 0.8880 meeting there a 89-hour simple moving average which acted as support and currently the price is trading at 0.8887.

Earlier today the Swiss Federal Statistical Office (FSO) published the November Producer and Import Price Index, which dropped slightly by 0.1 percent compared with the previous month, reaching 98.1 points. The producer price index for domestically produced goods decreased by 0.1 percent along with import prices, which fell by 0.2 percent. On an annual basis “the price level of the whole range of domestic and imported products fell by 0.4 percent”.

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The FSO also released the October Swiss Construction Price Index which grew for the fourth consecutive six-month period between April and October, adding 0.5 percent. This trend was mainly due to the larger rise in civil engineering prices (+0.9 percent) than in building prices (+0.5 percent). In its report FSO said that “despite a continuously high volume of work in the construction sector, pressure on prices remains strong”. Compared to the same period last year the construction scored an increase in prices of 0.8 percent (building up by 0.6 percent and civil engineering up by 1.3).

The USD/CHF yesterday broke its losing streak from the prior seven trading sessions. The price gained 0.30 percent, closing at 0.8897 and traded within the range 0.8847 to 0.8909. The low of the day was hit on the back of the Swiss National Bank’s press conference, monetary policy assessment and an unchanged Swiss Libor Rate. However, the price recovered following rising Retail Sales in November (by 0.7 percent).

Also yesterday the US House voted on the budget proposal. The draft aims to prevent the suspension of operation of the government next month and to ease restrictions on spending for the next two years. The proposal was voted for with broad support from both parties, with 332 “for”, to 94 “against”. In support of the proposal were 169 Republicans and 163 Democrats, and against – 62 Republicans and 32 Democrats. Approval of the budget will most likely be accepted by the Senate next week. So even before the deadline of 15 January it is likely to be adopted a more modest budget, which was discussed in detail by MPs. This event also supported the pair to gain.
The US PPI m/m is due to be released at 13.30 UTC today and analysts forecast a zero percent change in November.
Resistance levels: 0.8900, 0.8925 and 0.8950.
Support levels: 0.8880, 0.8860 and 0.8825.
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