Forex News: Swiss Franc Rises On Strong CPI Data

Swiss Franc Rises On Strong CPI Data

(RTTNews) - The Swiss franc strengthened against other major currencies in the European session on Thursday, after data showed that Switzerland's consumer price inflation increased more-than-expected in April to the highest level in four months.

Data from the Federal Statistical Office showed that the consumer price index, or CPI, climbed 1.4 percent year-over-year in April, after a 1.0 percent gain in March. Economists had expected inflation to rise slightly to 1.1 percent.

However, inflation remained within the central bank's target range of 0-2 percent.

On a monthly basis, consumer prices climbed 0.3 percent after remaining flat in March.

Separate official data showed that retail sales dropped 0.1 percent annually in March, reversing a 0.2 percent gain in the prior month. Sales of both non-food and food products declined 0.6 percent in March from last year.

Monthly, retail sales fell 0.4 percent in March, in contrast to a 0.1 percent increase in February.

European stocks traded lower after the U.S. Federal Reserve signaled that it is poised to keep interest rates higher for longer.

Sentiment was also dented after a survey showed the ongoing downturn in euro zone manufacturing activity deepened in April.

The Swiss franc held steady against its major rivals in the Asian session today.

In the European trading now, the Swiss franc rose to a 3-day high of 1.1405 against the pound, from an early low of 1.1494. The franc is likely to find resistance around the 1.13 region.

Against the euro and the U.S. dollar, the franc advanced to 2-day highs of 0.9757 and 0.9100 from early lows of 0.9827 and 0.9173, respectively. If the franc extends its uptrend, it is likely to find resistance around 0.96 against the euro and 0.90 against the greenback.

Moving away from an early low of 169.67 against the yen, the franc edged up to 170.70. On the upside, 176.00 is seen as the next resistance level for the franc.

Looking ahead, U.S. and Canada trade data for March and U.S. factory orders for March are slated for release in the New York session.

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