Switzerland's producer prices and import prices showed negative performance in January 2016. This is confirmed by the recent reported released by the Swiss Federal Statistical Office. Lower oil prices are named as the key factor for this decline. The year-over-year decline reached 5.3% over the reporting period. Still, the decline slowed down a little bit. For the sake of comparison, the similar figures for November and December were around 5.5%.
Nevertheless, the actual readings filed to come up to the analyst forecast expecting a 5.1% decline over the reporting period. It is interesting to note that the indicator has been going down since late 2013, Market Leader reports.
When it comes to the month-over-month figures, they dropped by 0.4% in January 2016, thereby continuing the tendency seen a month before. It is also interesting to note that experts had anticipated only a 0.2% decline last month, which means the stats came out worse than expected.
FOREX
In the meantime, Masterforex-V Academy reports that the Swiss Franc is still going down in value against the U.S. Dollar within the scope of a mid-term downtrend, which corresponds to a mid-term rally in the market of USDCHF. The currency pair is moving upwards within the scope of wave A/B of level H16, the experts say. Yesterday, the price was developing wave b(C ) inside the bullish momentum.
On breaking above the 1.0002 high, the currency pair is going to continue its way up to new highs, thereby indicating a weaker franc. If that’s the case, the price may encounter resistance around MF pivot 1.0222 and the top of the descending MF sloping channel. Alternatively, a break below MF pivot 0.9888 and the bottom of the ascending MF sloping channel will put an end to the rally and indicate a stronger franc.
