SNB Jordan: Inflation is above price stability range

SNB chairman Jordan is speaking, and says:

• Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is above average for price stability range
• Inflation is higher than we want
• Current monetary policy is still not restrictive enough

The USDCHF USD/CHF The USD/CHF is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Swiss franc of Switzerland (code CHF). The pair’s exchange rate indicates how many Swiss francs are needed in order to purchase one US dollar. For example, when the USD/CHF is trading at 1.2500, it means 1 US dollar is equivalent to 1.25 Swiss francs. The US Dollar (USD) is the world’s most traded currency, whilst the Swiss franc (CHF) is the world’s sixth most traded currency, The USD/CHF is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Swiss franc of Switzerland (code CHF). The pair’s exchange rate indicates how many Swiss francs are needed in order to purchase one US dollar. For example, when the USD/CHF is trading at 1.2500, it means 1 US dollar is equivalent to 1.25 Swiss francs. The US Dollar (USD) is the world’s most traded currency, whilst the Swiss franc (CHF) is the world’s sixth most traded currency, Read this Term is trading at 0.89046. Looking at the hourly chart, the price action has been trading above and below the 100 and 200 hour moving averages and 0.8894 and 0.89056 respectively. The low price off of the CPI data did find support buyers ahead of the swing area between 0.8859 and 0.88662. The low price stall just ahead of that area at 0.89678 before bouncing back to the upside.

For the EURCHF, looking at the 4 hour chart, the low price today dip below the low price from last week at 0.9744. The low price reach 0.9742. The inability to press lower has led to a rotation back to the upside. The price currently trades at 0.9772. The 100 hour moving average comes in at 0.97847 (not shown). That is the next target to get to and through if the buyers are to take more control.

Although his comments are more hawkish, the ECB is in the same boat with expectations for at least a hike or two left if not more. The CHF vs the EUR reached a high from last week vs that currency.

The Fed may be done which could be negative for the USDCHF, but the price is above its 200 and 100 hour moving averages. The price would have to move below that level to increase the bearish bias technically.