Swiss economic data released today beat expectations, with August Consumer Price Index and second-quarter GDP both surprising to the upside, according to Societe Generale strategists. The stronger-than-anticipated figures triggered immediate profit-taking across Swiss franc pairs, sending EUR/CHF and USD/CHF lower as traders unwound positions.
Despite the positive data prints, Swiss National Bank policy expectations remain unchanged for now. The resilient economic indicators have not shifted market pricing for the SNB’s next moves, suggesting traders view the upside surprises as insufficient to alter the central bank’s dovish trajectory.
Societe Generale strategists interpret the data as supporting a dip-buying strategy for the Swiss franc. The combination of solid domestic fundamentals and stable rate expectations creates a favorable backdrop for franc strength, particularly during any short-term weakness in the currency pairs.
FXnCO Insight
Traders should watch for pullbacks in EUR/CHF and USD/CHF as potential entry points to position for franc appreciation, with the data supporting the currency’s underlying strength despite unchanged SNB policy expectations.
Source: FXStreet