USD/CHF back to 0.9400
From a first rise back to 0.9400 ground, the USD/CHF was capped at 0.9419 in the Asian morning and plunged to 0.9389, where it spent the rest of the session, before retesting 0.9400 on the German CPI inflation report and European flows.
The German data came in line with consensus, unchanged on the month of September, with the annualized figure softening from +2.1% to +2.0%. The EU normalized CPI report in France softened to +2.2%, instead of rising from +2.4% to +2.5% in September. The monthly change was a -0.3% contraction, below the unchanged consensus.
“Assuming a close is seen above the downtrend and the 1st October high at 0.9438, we should see the market base and head higher to initially 0.9520 then 0.9600/35, the 50% retracement”, wrote Commerzbank analyst Karen Jones.