The Swiss franc was strong today, which was a surprising turn of events considering that the market sentiment was unfavorable to safe currencies. Domestic macroeconomic data could not explain the strength of the currency as it was not good, though within expectations.
Switzerland’s Federal Statistical Office reported that the Producer Price Index fell by 0.2% in August, matching the median forecast. The decline followed a drop of 0.1% in July. The report explained the reasons for the decline:
The decline is due in particular to lower prices for rubber and plastic products as well as basic metals and semi-finished metal products.
USD/CHF dropped from 0.9927 to 0.9910 as of 10:38 GMT today. EUR/CHF fell from 1.0930 to 1.0921.
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