Is that a new low I see? Why, yes it is! The Swissy was once again sold off yesterday as it made a fresh 19-month low against the safe haven dollar. Despite the new low, the Swissy traded relatively stable and closed the day with a mere 6-pip loss.
No major news report was released in Switzerland yesterday but today we’ll be treated to the country’s Producer Price Index. The PPI, which measures the monthly change in the price of goods and raw materials purchased by manufacturers, is expected to report a 0.2% decline for the month of June, just like May’s figure.
Since the PPI is considered as a leading indicator of consumer inflation, higher than expected figures are normally seen as bullish for the Swissy. Let’s see how the PPI will affect the Swissy’s price action later.