The USD/CHF exchange rate has been on a steady rise recently, reaching a near two-year high of 0.9400. This is due to a combination of weaker Swiss data and inflation worries.
The Swiss economy has been struggling recently, with GDP growth slowing to 0.4% in the first quarter of 2019. This is the slowest rate of growth since the financial crisis in 2008. The Swiss National Bank (SNB) has responded by cutting interest rates and introducing a new round of quantitative easing. This has weakened the Swiss franc, making it less attractive to investors.
At the same time, inflation in Switzerland has been falling, with prices rising at an annual rate of just 0.3% in April. This is well below the SNB’s target of 2%. The central bank has responded by cutting interest rates and introducing a new round of quantitative easing. This has weakened the Swiss franc, making it less attractive to investors.
The combination of weaker Swiss data and inflation worries has led to a strengthening of the USD/CHF exchange rate. This is good news for those looking to buy Swiss francs, as they can get more for their money. However, it is bad news for those looking to sell Swiss francs, as they will get less for their money.
Overall, the USD/CHF exchange rate is likely to remain near 0.9400 in the near future, as long as Swiss data remains weak and inflation worries persist. This could be beneficial for those looking to buy Swiss francs, but could be detrimental for those looking to sell them.
Source: Plato Data Intelligence: PlatoAiStream
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