USD/CHF remains below 0.8900 following Swiss CPI data release

• USD/CHF holds losses after the release of February’s Swiss Consumer Price Index on Wednesday.
• The monthly CPI increased by 0.6% in February, surpassing market forecasts of a 0.5% rise.
• The US Dollar faces challenges due to US economic growth concerns.

The USD/CHF pair continues its downward trend for the third consecutive session, trading around 0.8880 during European hours on Wednesday. The pair remains under pressure following the release of Swiss Consumer Price Index (CPI) data.

The monthly CPI rose by 0.6% in February, marking the first increase in nine months and the fastest pace since February 2021, exceeding market expectations of a 0.5% gain. The annual inflation rate eased slightly to 0.3% in February, surpassing the expected 0.2% increase but down from 0.4% in January, marking its lowest level since April 2021. Meanwhile, core inflation—which excludes volatile items such as unprocessed food and energy—remained steady at 0.9%, unchanged from January.

Additionally, the USD/CHF pair depreciates as the US Dollar (USD) struggles due to rising fears over slowing US economic growth. Investors now turn their focus to key US economic data, including the ISM Services PMI and ADP Employment Change, set for release in the North American session.

President Trump’s 25% tariffs on Canadian and Mexican goods took effect on Tuesday, alongside a hike in duties on Chinese imports to 20%. However, market sentiment weighs on the USD amid speculation that Trump could soften his stance on tariffs.

US Commerce Secretary Howard Lutnick suggested in a Fox News interview that Trump may reconsider the tariff policy less than 48 hours after its implementation, indicating potential relief if USMCA rules are followed. However, the New York Times reported that Trump has privately expressed his intent to keep the tariffs in place.

Economic Indicator

Consumer Price Index (MoM)

The Consumer Price Index (CPI), released by the Swiss Federal Statistical Office on a monthly basis, measures the change in prices of goods and services which are representative of the private households’ consumption in Switzerland. The CPI is the main indicator to measure inflation and changes in purchasing trends. The MoM figure compares the prices of goods in the reference month to the previous month. Generally, a high reading is seen as bullish for the Swiss Franc (CHF), while a low reading is seen as bearish.

Last release: Wed Mar 05, 2025 07:30

Frequency: Monthly

Actual: 0.6%

Consensus: 0.5%

Previous: -0.1%

Source: Federal Statistical Office of Switzerland