Swiss franc dips as Swiss inflation falls

The Swiss franc is lower on Thursday. Early in the North American session, USD/CHF is trading at 0.9050, up 0.24%. It has been a bumpy year for the Swiss franc, which is down 7.7% against the US dollar and is trading at its lowest level since November.

Switzerland’s inflation rate eases to 1%

Switzerland is the envy of most major economies, with a very low inflation rate. Inflation rose by just 1% y/y in March, down from 1.2% and below the market estimate of 1.3%. This was the lowest level since September 2021.

Inflation has stayed within the Swiss National Bank’s target of 0-2% for ten straight months and policy makers at the central bank can give themselves a pat on the back for a job well done. The SNB had embarked on a rate hike-cycle in order to prevent inflation from breaching the upper band of the target, but with inflation now falling, there is the concern that inflation could fall too low, which could lead to deflation.

The SNB trimmed rates in March by quarter-point, the first major central bank to lower rates. This brought the SNB’s key rate to 1.5%. The SNB meets every quarter, and today’s inflation report has raised expectations that another cut is coming at the June meeting.

In the US, unemployment claims were higher than expected, at 221,000 last week. This was higher than the previous reading, which was revised to 212,000 and beat the market estimate of 214,000. The nonfarm payrolls report, a critical indicator, will be published on Friday. The market estimate stands at 200,000 for March, compared to 275,000 a month earlier.

USD/CHF Technical

  • USD/CHF tested resistance at 0.9074 earlier. Above, there is resistance at 0.9119
  • 0.9050 and 0.9005 are providing support

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental and macroeconomic analysis, Kenny Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in major online financial publications including, Seeking Alpha and FXStreet. Kenny has been a MarketPulse contributor since 2012.