Forex: USD/CHF pressured on European data

The USD/CHF eased in early Wednesday trading from just below 0.9230, but only recently dropped below the 0.9200 handle, just ahead of the release of German data. January CPI and HICP dropped to +1.7% and +1.9% (YoY) in line with consensus. January PPI rose from 1.5% to 1.7% (YoY), instead of easing to 1.2%, as data rose +0.8% on the month (consensus of +0.3%).

The pair has fallen to as low as 0.9185. French business climate surprised by rising from 87 (revised from 86) to 90 in February and CPI data (EU normalized) fell -0.6% (MoM) to an annualized drop from 1.5% to 1.4%, both figures below consensus.

“USD/CHF has seen some slippage, this is viewed as corrective and while contained by the .9160 support line will make no impact on the chart”, wrote Commerzbank analyst Karen Jones, pointing to resistance at 0.9250/59 and 0.9327 (channel) and the need to clear 0.9390 on a closing basis to restore an upside bias longer term.