Broad Dollar weakness opened spot to mild selling into early European trading but the push below 1.2075 failed to find significant follow-through as Swiss inflation data was released. The flat monthly release left the Franc high and dry and the dip in [EUR/CHF] towards 1.5900 was soon bought into to stall further CHF progress against the embattled USD.
Standing bids into 1.2050 propped and the price has since worked a 1.2050/75 range with a break back above 1.2080 required to put a fresh upward bias on the short-term charts. Against the Euro the Franc failure to break 1.59 opened the cross to a bounce, trading has since rallied to 1.5931 but EUR/CHF offers have now emerged. 1.2000 option barriers remain the key downside focus.
Swiss November CPI came in flat on the month and up 0.6% on an annualized basis but this is below the +0.2% M/M & +0.7% Y/Y that some economists had been touting. The unchanged reading will do little to dissuade the market that the SNB is going to hike rates at their Q4 meeting in December but it does raise certain concerns over the longer-term outlook.
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