EUR/CHF is tactically trying to turn a corner – SocGen

Market news

13 February 2024

EUR/CHF is tactically trying to turn a corner – SocGen

EUR/CHF +0.5% after weak Swiss Consumer Price Index (CPI) data. Economists at Société Générale analyze the pair’s outlook.

Weak CPI opens door to March SNB cut

The good news for EUR/CHF is that inflation in Switzerland slowed to 1.3% and core declined to just 1.2%, the lowest since January 2022. A dovish pivot in March looked a dead cert after the comments of President Jordan in Davos last month. Weak CPI brings the possibility of a rate cut next month from 1.75%.

It has been a tricky start to the year for EUR/CHF but positioning for a rate cut should mean EUR/CHF is at least tactically trying to turn a corner.

The cross still trades below the 200-DMA of 0.9580.

USD/CHF rallies to 0.8800 on soft Swiss Inflation data, US CPI eyed

Gold price rebounds swiftly on geopolitical uncertainty, US Inflation remains key

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