BREAKING: USDCHF erases daily drop after Swiss CPI data

Swiss CPI inflation data for May was released today at 7:30 pm BST. Report was expected to show annual inflation remaining unchanged at 1.4% YoY, but monthly reading was expected to show an acceleration from 0.3% MoM in April to 0.4% MoM in May. Reading was watched closely by CHF traders after SNB decided to unexpectedly cut rates at its Q1 policy meeting. Next SNB rate decision is scheduled for June 20, 2024.

Actual report matched expectations when it comes to annual CPI. Monthly CPI came in slightly lower than expected at 0.3% MoM. However, it should be said that there was an almost equal split in expectations for monthly reading, between 0.3% and 0.4%. CHF weakened following the release, with USDCHF erasing daily drop.

Switzerland, CPI inflation for May

• Annual: 1.4% YoY vs 1.4% YoY expected (1.4% YoY previously)
• Monthly: 0.3% MoM vs 0.4% MoM expected (0.3% MoM previously)

USDCHF erased daily drop after Swiss CPI data. Source: xStation5