The Swiss franc lost ground against the other major currencies in European deals on Friday, as the nation’s consumer prices fell in November.
Data from Federal Statistical Office showed that the CPI declined 0.1 percent month-on-month in November, compared to forecasts for a flat reading. In September, the inflation ticked up by 0.1 percent.
On an annual basis, the consumer prices fell 1.4 percent, the same rate of decrease as in the previous three months. The decline was steeper than expectations for a 1.3 percent slide.
The European markets are trading lower, as investors across the globe reacted negatively to the European Central Bank’s stimulus measures that fell of market expectations.
The remarks by Federal Reserve Chair Janet Yellen in her testimony before the congressional Joint Economic Committee seemed to indicate the central bank remains on track to raise interest rates later this month.
Investors will now shift focus to the U.S. Labor Department’s monthly jobs report that will be released later today, due to its potential impact on the outlook for U.S. interest rates.
The franc showed mixed performance in Asian deals. While the franc held steady against the greenback, pound and the yen, it advanced against the euro.
The franc fell to 1.0865 against the euro and 0.9984 against the greenback, from its early highs of 1.0831 and 0.9912, respectively. If the franc continues slide, it may find support around 1.095 against the euro and 1.01 against the greenback.
The franc came off from its prior highs of 1.5002 against the pound and 123.59 against the yen, edging down to 1.5094 and 122.92, respectively. The next possible support for the franc is seen around 1.522 against the pound and 121.00 against the yen.
Looking ahead, Canada and U.S. jobs data for November, U.S. trade balance for October, U.S. Baker Hughes rig count data and Canada Ivey PMI for November are set to be announced in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com