The Greenback faces Correction Versus the Swiss Franc on Consumer Price Inflation Data
The US dollar declined further against the Swiss franc after the release of US consumer price inflation data, according to which the core consumer price inflation increased more rapidly in the month of January as compared to any other month in the last year. However experts were of the opinion that high consumer price inflation does not brings alarming inflationary pressures yet.
According to the latest data by US Labor Department the core Consumer Price Index surged 0.2 percent excluding food and energy for the month of January as compared to 0.1 percent in the month of December which was in line with analystsâ€™ expectations.
The overall consumer price index surged 0.4 percent as the sectors of food and energy has the highest contribution in the CPI calculation. Experts projected the increase of 0.3 percent in overall consumer price index.
However though the CPI index surged substantially still it support the stance of low inflation maintained by US Federal Reserve.
The US dollar declined to 0.9512 versus the Swiss franc in European trading session which happens to its lowest since February 4th, 2011. However the greenback recovered to 0.9524 later in the session still reported the decline of 0.73 percent.
The pair USD/CHF is expected to find support around 0.9448 whereas it can witness resistance around the level of 0.9738. The support and resistance levels also happen to be the pairs lowest on February 4th and Wednesdayâ€™s highest.
However the US dollar gained versus the single currency on uncertainty over euro zoneâ€™s sovereign debt situation. The pair EUR/USD declined 0.05 percent to 1.366.
Rehan Khan has been involved in the financial sector for last 6 years. During that time he has been associated with many financial institutions, banks and brokerages. Rehan is also a graduate in finance and has been writing for last 2 years for various web publications.
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