The Swiss economy began its week with important economic data and readings, represented by retail sales for November and consumer prices for December, as both recorded an increase that exceeded market expectations.

The consumer price index for December recorded a reading exceeding expectations by 1.5%, recording 1.7% and also higher than the previous reading, which had recorded 1.4%, as these data show growing inflationary pressures on monetary policymakers, reducing expectations about an early cut in the Swiss interest rate this year.

As for retail sales data for November, it recorded an annual rate of 0.7%, an increase that exceeded expectations and an increase from the previous reading, which had recorded 0.3%.

These data indicate strong economic growth in Switzerland during the fourth quarter. This growth, coupled with the rise in inflation, will force the Swiss National Bank to hold interest rates at high levels this year.

Two readings of data that have a significant impact on the Swiss economy and the franc are in its favor in the global currency market, with data that may force the Swiss National Bank to adhere to the same monetary policy approach and the possibility of postponing lowering interest rates and keeping them for as long as possible this year.

Note that the franc recorded an increase against the US dollar, moving in the positive zone of the world's currencies after the release of these data, which increases the hypothesis of keeping interest rates high for the longest possible period.
The US dollar fell against the Swiss franc by approximately 0.2%, while the franc ended Friday's trading stable against the dollar, after it had lost more than 1.0% against the dollar last week, in its first weekly loss within the last month.

*All data provided is intended for educational or informational purposes only and should not be considered investment advice.