Updated: Switzerland January CPI -0.1% as Expected (MoM)

Comment:

The existing monetary policy of the Swiss National Bank (SNB), combined with the stability of the Consumer Price Index (CPI), is likely to lead to relative weakness of the Swiss franc in the short term. The low monthly CPI (-0.1%) and the slight slowdown in the annual CPI (0.4% versus 0.6%) indicate a weakening of inflationary pressure in Switzerland, which may encourage the SNB to keep interest rates unchanged or even lower them further. This situation typically weakens the franc in the context of current trends. As for the correlation between the franc and gold, it may remain positive, with gold continuing to be perceived as a safe haven asset where investors seek shelter during periods of economic uncertainty. However, due to SNB’s more accommodative monetary policy, the franc may deviate from its traditional correlation with gold, especially if gold begins to trade more actively due to global risks.

CPI (MoM) (Jan)
Actual: -0.1%
Forecast: -0.1%
Previous: -0.1%

CPI (YoY) (Jan)
Actual: 0.4%
Forecast: 0.4%
Previous: 0.6%