The Swiss CPI (Consumer Price Index), which is released every month, is an inflation index which measures the change in the price of goods and services paid by consumers. A reading which is higher than the market forecast is bullish for the Swiss franc. Here are all the details, and 5 possible outcomes for USD/CHF. Published on Monday at 7:15 GMT. Indicator Background Analysts consider CPI one of the most important economic indicators, and the release of the Swiss CPI can affect the direction of USD/CHF. Higher inflation signals stronger economic activity, which is bullish for the Swiss franc. The CPI reading jumped by 0.6% last month, above the market forecast and its highest level since April 2011. The markets are predicting a modest increase of 0.2% in May. Sentiments and levels After trading in choppy waters throughout April, USD/CHF has been moving upwards in May. Although recent US releases have been mixed, investors remain very concerned with what is happening throughout Europe. Last week’s weak Euro-zone unemployment figures sent the Euro tumbling, and the Swiss franc is also paying the price, as the dollar benefits from the crisis on the continent. Thus, the overall sentiment is bullish on USD/CHF towards this release. Technical levels, from top to bottom: 0.9317, 0.9250, 0.9204, 0.9156, 0.91, and 0.90. 5 Scenarios Within expectations: -0.1% to 0.5%. In this scenario, USD/CHF could show some slight fluctuation, but it is likely to remain within range, without breaking any levels. Above expectations: 0.6% to 0.9%: A stronger reading than predicted could push the pair below one support level. Well above expectations: Above 0.9%: An unexpectedly sharp rise in inflation could push USD/CHF below two or more support levels. Below expectations: -0.5% to -0.2%: A reading in negative territory would signal weak economic activity, and the pair could break one resistance lines. Well below expectations: Below -0.5%: A very weak reading could result in the pair breaking two or more resistance lines. For more on the Swiss franc, see the USD/CHF forecast. Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next EUR/USD Outlook May 7-11 Yohay Elam 11 years The Swiss CPI (Consumer Price Index), which is released every month, is an inflation index which measures the change in the price of goods and services paid by consumers. A reading which is higher than the market forecast is bullish for the Swiss franc. Here are all the details, and 5 possible outcomes for USD/CHF. Published on Monday at 7:15 GMT. Indicator Background Analysts consider CPI one of the most important economic indicators, and the release of the Swiss CPI can affect the direction of USD/CHF. Higher inflation signals stronger economic activity, which is bullish for the Swiss franc.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
