Currency Updates

In November, Switzerland’s Consumer Price Index (CPI) stayed at 0%, showing no change from last year. This was below the expected 0.1% increase, highlighting a gap between what was anticipated and reality regarding inflation. In currency news, the Pound Sterling continued its recovery, while the EUR/USD pair remained steady after positive services data from the Eurozone. Gold prices stayed close to daily lows, maintaining support above $4,200 despite market challenges. Chainlink surged nearly 7% following the launch of Grayscale’s LINK ETF. Additionally, several altcoins, including Pudgy Penguins and Sui, saw double-digit gains as Bitcoin’s price rose above $92,000. Looking ahead, the White House is preparing for potential changes to tariffs and is considering alternative policies. This indicates ongoing economic adjustments in response to evolving regulations.

Swiss Economic Indicators

FXStreet offers forward-looking insights about markets and instruments. They emphasize the importance of thorough research before making financial decisions. While they provide recommendations, they do not give personalized investment advice. Switzerland’s consumer price index of zero for November sends a strong message. This low figure increases deflationary pressure, putting the Swiss National Bank (SNB) in a difficult position ahead of its meeting next week. A dovish approach, likely involving a rate cut to weaken the franc, seems probable. With this situation, there are opportunities to profit from a weaker Swiss franc, especially against the euro. The positive services data from the Eurozone creates a clear policy gap between the European Central Bank (ECB) and the SNB. Consider buying EUR/CHF call options or selling CHF futures to benefit from this anticipated movement. This Swiss development comes as the US dollar weakens, partly due to expectations of a Federal Reserve rate cut. As of this morning, futures indicate a 92% chance of a 25-basis-point reduction at next week’s FOMC meeting. This overall dollar weakness helps keep gold prices above $4,200 and supports Bitcoin’s rise above $92,000. We should also remember that the SNB has a history of sudden, unexpected actions, like the franc’s de-pegging in January 2015, which caused significant market volatility. This suggests that implied volatility on CHF pairs may increase as the SNB’s announcement approaches. Traders might consider buying straddles on USD/CHF to take advantage of this expected rise in volatility. Create your live VT Markets account and start trading now.

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