Swiss Franc Weaker amid Deflation

The Swiss franc fell against the US dollar today after the yesterday’s massive rally. The Swissie also declined versus the euro for the second day. Economic data from Switzerland was not supporting the Swiss currency, showing deflation.

Consumer prices fell 0.1 percent in Switzerland last month after rising at the same rate in October. Pressure on the franc eased after the European Central Bank had performed a rather limited expansion of stimulus, giving the Swiss National Bank to expand monetary accommodation. Still, the currency may fall if today’s US non-farm payrolls would be positive.

USD/CHF rallied from 0.9929 to 1.0002 as of 12:50 GMT today. EUR/CHF rose from 1.0863 to 1.0886 after reaching the daily low of 1.0831 earlier.

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