CHF: Inflation risks tilt higher on Oil – Commerzbank

💡 DMK Insight

Swiss core inflation staying flat is a big deal for traders watching the CHF: If Pfister’s prediction holds, it signals stability in the Swiss economy, which could impact the Swiss Franc’s strength against other currencies. With core inflation not budging, the Swiss National Bank might maintain its current monetary policy, keeping interest rates steady. This could lead to a more predictable trading environment for forex traders, especially those focusing on pairs like EUR/CHF or USD/CHF. But here’s the flip side: if inflation unexpectedly rises, it could catch traders off guard, leading to volatility. Keep an eye on economic indicators and market sentiment around January’s release. Watch for any shifts in the SNB’s tone, as that could signal future rate adjustments. The key level to monitor is the CHF’s performance against the Euro; a break below 1.05 could indicate a stronger Franc, while a failure to hold could suggest weakness ahead.