CHF: Inflation outlook supports steady SNB stance – Nomura

💡 DMK Insight

Swiss inflation holding steady is a mixed bag for traders: it signals stability but also highlights the impact of a strong Franc. With foreign products becoming cheaper, this could lead to reduced domestic demand, affecting local businesses. Traders should keep an eye on the Swiss National Bank’s response, as prolonged low inflation might prompt them to adjust monetary policy. If the Franc continues to strengthen, we could see further downward pressure on inflation, which might influence the EUR/CHF pair. Watch for any shifts in inflation data over the coming months, especially as we approach key economic indicators that could trigger volatility in the forex markets.