Swiss Franc Strengthens As SNB Rate Cut Hopes Fade
June 04 2024 - 9:54AM
RTTF2
The Swiss franc appreciated against its major counterparts in
the New York session on Tuesday, as Switzerland's consumer prices
posted a steady increase in May.
The consumer price index grew 1.4 percent on yearly basis, the
same rate as seen in April.
On a monthly basis, consumer prices advanced 0.3 percent due to
several factors including rising prices for housing rentals and for
international package holidays.
Core consumer prices gained 0.2 percent on month, taking the
annual inflation to 1.2 percent in May.
The data reduced the probability of a rate cut when the Swiss
National Bank meets this month.
The franc firmed to a 1-1/2-month high of 0.9674 against the
euro, 2-1/2-month high of 0.8890 against the greenback and a 3-week
high of 1.1368 against the pound, from its early lows of 0.9781,
0.8972 and 1.1483, respectively. The franc is poised to challenge
resistance around 0.95 against the euro, 0.87 against the greenback
and 1.11 against the pound.
The franc recovered to 174.11 against the yen, from an early
5-day low of 173.21. This may be compared to a previous fresh
5-week high of 174.75. Next key resistance for the currency is seen
around the 175.00 level.
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