Swiss Franc Losses Likely If CPI Seen Boosting SNB Intervention.The Swiss Franc looks vulnerable in the week ahead as June's headline inflation data threatens to embolden em·bold·en
tr.v. em·bold·ened, em·bold·en·ing, em·bold·ens
To foster boldness or courage in; encourage. See Synonyms at encourage. the central bank's efforts to depreciate depreciate v. in accounting, to reduce the value of an asset each year theoretically on the basis that the assets (such as equipment, vehicles or structures) will eventually become obsolete, worn out and of little value. (See: depreciation) the currency. Swiss Franc Losses Likely If CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch.
(2) (Counts Per I Seen Boosting SNB SNB Snowboard
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SNB Strengths/Needs-Based Intervention Fundamental Forecast for Swiss Franc: Bearish - Swiss Trade Surplus Narrows as Exports Fall - SNB Intervention Pushes Franc Sharply Lower Against the Euro The Swiss Franc looks vulnerable in the week ahead as June's headline inflation data threatens to embolden the central bank's efforts to depreciate the currency. The Consumer Price Index is expected to shrink at an annual pace of -1.1% in June, marking the fourth consecutive month in negative territory and the largest decline since in at least 33 years. The statement issued by the Swiss National Bank The Swiss National Bank is a central bank, responsible for the monetary policy of Switzerland and issuing the Swiss franc banknotes.
The names of the institution in the four official languages of the country are: German: following their quarterly policy meeting in June said that the risk of deflation "remains a concern" and reiterated their aim to continue driving long-term borrowing costs lower by buying local currency-denominated bonds and committed to "take firm action to prevent an appreciation of the Swiss franc against the euro." At this point, the SNB expects inflation to shrink -0.5% on average over 2009 and rebound to add 0.4% next year. The International Monetary Fund (IMF IMF
See: International Monetary Fund
See International Monetary Fund (IMF). ) seems to disagree, however, calling for CPI to fall -0.6% this year and -0.3% in 2010. A downside surprise in June's report could open the door for traders to punish the Franc as they price in a likelihood that the SNB's outlook will prove too rosy, requiring the bank to step into the forex market at an accelerated pace to drive down the CHF CHF
In currencies, this is the abbreviation for the Swiss Franc.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. exchange rate. The possibility of such an outcome seems reasonable considering the leading Producer and Import Prices reading fell by a greater-than-expected -5.0% in May, topping forecasts for a -4.7% decline. Elsewhere on the economic calendar, the UBS UBS Union Bank of Switzerland
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UBS Ulaanbaatar Broadcasting System Consumption Indicator that aims to forecast the trend in private spending in the coming 3-4 months is likely to fall to a fresh 4-year low in May as the pace of unemployment continues to push higher, ticking up to a seasonally-adjusted rate of 3.5% in the same period for the first time since March 2006. Meanwhile, the SVME-PMI measure of manufacturing-sector sentiment is set to rise to 41.0 in June from 39.8 in the previous month. A reading below the 50 mid-point level suggests that manufacturing continues to contract, albeit at a slower pace. On balance, neither of these releases are likely to be substantial catalysts for Swissie price action, expressing themes that have almost certainly been priced into the exchange rate for some time.
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