September 6, 2012
Thanks to a slight improvement in risk sentiment, the Swiss franc was able to pocket some gains against the Greenback during yesterday's trading. However, price action was a little more volatile than usual as USD/CHF spiked to a high of .9609, dipped to a low of .9530, before closing at .9560.
Swiss CPI missed expectations for the month of August as it stayed flat during the period instead of rising by 0.1%. On an annualized basis, Swiss CPI is down by 0.5% last month.
This release triggered a Swissy selloff during the London session, but these losses were quickly recovered as the franc got a boost from risk appetite. As it turns out, market watchers are feeling optimistic about prospects of further easing from several major central banks as they believe that the global economy needs to be propped up by more stimulus.
There are no reports due from Switzerland today which means that the Swissy could be vulnerable to risk sentiment. Note that the ECB and BOE are set to make their rate statements today and that the U.S. is set to release its ISM non-manufacturing PMI. Dovish statements or weaker than expected economic figures could set off another round of risk aversion, which might be negative for the franc.
"The only cable I watch is the pound baby."