The level of retail sales in Switzerland decline in May, according to the latest report published by the Swiss Federal Statistical Office. June turned out to be a bearish month for consumer prices.
In particular, the retail sales volume in May dropped by 0,6% during the reporting period as compared to May 2013. The decline followed a 0,8% increase a month before. It should be noted that the turnover decline was seen for the first time since February 2014.
The retail sales excluding fuel declined by 0,3% after a 1,1% hike during the previous reporting period (April). As for the month-over-month comparison with a glance at seasonality, the retail sales decline reached 1% in May, Market Leader reports.
At the same time, consumer prices were slightly down in June. The drop reached 0,1% after a 0,3% increase in May. Experts had expected a 0,1% increase but the result failed to match their expectations. The price drop was the first one since January 2014, when we could see a 0,3% drop.
Meanwhile, the Swiss Franc remains steady in an uptrend against the US Dollar, which means that USDCHF is going down. In particular, the currency pair is developing wave A/B of level Daily or higher. The mid-term bias is bearish. Today, on July 9th, were are expecting the price to complete sub-wave b(C ), which is likely to b followed by a break below the 0.8854 low, Masterforex-V Academy reports.
The likely levels of supports can be found at 0.8829/28, 0.8817/09, 0.8781/79. After breaking above the 0.8956 high, the currency pair may start a bullish momentum – maybe A/B of level Daily. The key levels of resistance are found at the MF sloping channel and pivot 0.8973 + 0.8980, 0.8992/95.
