Swiss Producer and Import Prices fell 2.1% year-on-year in July, reinforcing deflation and supporting a weaker Franc outlook.
USD/CHF slipped to around 0.8130 in European trading Thursday, retreating after three days of gains as the Swiss Franc strengthened. The move followed July’s Producer and Import Prices data, which showed a 2.1% year-on-year decline, matching June’s pace and extending a deflationary trend.
Prices fell 0.1% month-on-month, marking a third consecutive drop, driven by lower petroleum-related costs. The data aligns with subdued domestic inflation, remaining below the Swiss National Bank’s 0-2% target midpoint, analysts noted.
Market expectations for Federal Reserve rate cuts grew after U.S. inflation cooled, pressuring the USD further. Analysts suggest near-term inflation risks remain limited, delaying potential CHF support from imported price pressures.