The USD/CHF fluctuated within a tight range on Wednesday as haven demand dropped on the franc with the improving sentiment that sent equities, commodities and high yielding currencies higher to compensate for the past two days of losses.
Investors shifted their focus towards signs of continued global recovery with rising industrial production in Europe and the ninth consecutive gain in US retail sales. The positive sentiment eased the plight for the haven of the franc, yet the dollar remains weak and accordingly more support for swissy to continue its gains.
The inflation figures from Switzerland were steady and no signal for SNB move as the franc’s appreciation offsets some of the price pressures and preserves the stability in the economic recovery.
Investors will be assessing more economic signals from Switzerland on Thursday at 09:00 GMT with the ZEW Expectations for April and after the drop of 13.5 in the previous month the market needs signs of developments, though the franc’s rally and ongoing uncertainty probably weighed on the sentiment and will affect swissy.
From the US we are waiting the US weekly jobless claims at 12:30 GMT which are expected marginally stable from the previous week at 380 thousand. The focus though remains more on the inflation figures with factory gates also due at the same time. The PPI is expected steady with an annual 0.2% and that will weaken the dollar further on subdued inflation threats and accordingly power majors on the back of the prevailing diversification from the dollar as investors see prolonged loose monetary policy in the US.
Originally posted here
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