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On The Backfoot In Wake Of Domestic CPI Data

CHF

CHF comes under some light pressure on the back of softer than expected domestic CPI data (the M/M & Y/Y readings missed wider exp. by 0.1ppt), but both EUR/CHF & USD/CHF remain comfortably within their recently observed ranges. SARON futures run little changed to 4bp richer post-data as the readings see the Y/Y CPI print back within the SNB’s tolerance band for the first time since early ’22. Still, with the SNB's latest CPI forecasts above target (+2.2% in 2023 & 2024 and +2.1% in 2025) and the bank wary of second-round/offshore inflationary impulses, further rate rises cannot be ruled out.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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