Swiss CPI weaker than expected

Swiss CPI data has come in weaker than expected. March showed -0.3% m/m, -0.4% y/y declines, weaker than median forecasts of flat and -0.1% respectively.

The numbers will not have gone down well at the SNB who are highly worried about the risk of deflation. They fully intend to keep the swiss franc from strengthening to help combat that risk.

It’s not surprising to see the EUR/CHF cross tick higher in response to the number. The cross had stood around 1.5255 prior to the release of the data and has advanced to 1.5270 at writing. There is probably more upside to come.