Franc Retreats as CPI Declines

The Swiss franc dropped today after the government report showed that the consumer prices fell last month in Switzerland, leading to the speculation about a possibility of another intervention by the nation’s central bank.
The Federal Statistical Office reported that Switzerland’s consumer price index fell 0.2 percent in November, following the 0.1 percent drop in the month before. The expected reading was a 0.1 percent growth. Tomorrow’s report is expected to show that the unemployment rate increased by 0.1 percentage point to 3.1 percent. Analysts speculate that the Swiss National Bank may view the signs of an economic slowdown as a proof that the franc is still too strong and hurts economy, so another intervention may be coming.
USD/CHF advanced from 0.9203 to 0.9272 and EUR/CHF ticked up from 1.2334 to 1.2412 today as of 16:44 GMT.

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