The pair’s movement may witness calm trading due to the absence of fundamentals from the Swiss economy, where the pair’s movements are going to be determined by the data from the United States at 12:30 GMT which is expected to show that jobless claims fell to 385 thousands last week from 388 thousands a week before, which if matched forecasts may push the pair to the upside.
Yesterday, Swiss CPI retreated to 0.1% in March compared with the prior 0.4%. On the annual basis, the reading dropped 2.9% from both previous and expected readings of 0.5%. In fact, the drop in inflation add to speculations that the SNB will not raise interest rate any soon, thereby raising expectations to see some bullishness in the pair in the coming period.
Yet, the dollar might strengthen further against the Franc after the month of June, particularly after the end of the $600 billion bond purchase program adopted by the Fed that may coincide with raising interest rate which will probably give some support to the US dollar.
Originally posted here
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