The Swiss Federal Statistical Office has just released another report on Swiss consumer prices in February 2016. According to the report, the consumer prices were declining at the lowest pace seen over the past 13 months.
This leads us to believe that analysts failed to predict the dynamics. The thing is that the year-over-year figures contracted by 0.8% over the reporting period versus 1.3% seen a month before. At the same time, analysts had expected the index to shrink by 1.1%. As for month-over-month figures, the index indeed gained some value by increasing by 0.2% over the same reporting period, the report says. It is interesting to note that the index grew for the first time in 4 months. In January, the prices shrank by 0.4% against the expectations of -0.1%.
At the same time, it should be noted that the Harmonized Index of Consumer Prices (HICP) for Switzerland also showed some decrease. The prices dropped by 0.9% y/y in February 2016 as opposed to 1.5% in January 2016. We remind you that the so-called HICP is used by EU authorities for comparing the similar data coming from EU members. Experts say that this is the less considerable monthly decline of the index seen since July 2015.
FOREX
In the meantime, Masterforex-V Academy experts report that the Swiss Franc feels like continuing its strengthening against the U.S. Dollar, which means that USDCHF is still trading within the scope of the same long-term downtrend. To be more specific, the currency pair is forming wave c(C ) inside the downtrend, the experts say.
The closest levels of support can be found at the local lows of 0,9660 as well as the bottom of the ascending MF sloping channel.
At the same time, MF pivot 1,0250 and the top of the descending MF sloping channel are seen as the closest major levels of resistance.
