USDCHF tests trendline resistance today and holds. Lower PPI may solicit some deflationary chatter at some point.
Written November 13, 2009 at 10:14 AM EST by Greg Michalowski
The USDCHF tested the trendline resistance at the 1.0195 level. A move above this level (well make it 1.0200) should lead to further gains in the pair.
Overnight, the Swiss Producer Price Index came in at a lower than expecte d-0.4% for the month and -4.7% YoY. With a higher Swiss Franc it lowers the cost of imports for the country and may lead to chatter about deflation in the country. The SNB has already signalled a disdain for a higher CHF and with lower PPI inflation, perhaps there may be another reason to want a lower currency.
Look for resistance to remains against the level. However, a break could lead to some additional upside moves for the pair.
Categories: Forex Trading | Tags: USD/CHF
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