Release Explanation: CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of Inflationary pressures. It is the most widely used Inflation indicator of Central Banks, Institutions, and Governments. It is used to calculate Cost of Living numbers for Government programs. Each regional Central Bank will have their own CPI Target.
Trade Desk Thoughts: In January, the Swiss CPI read shows that the pace of inflation is slowing from the high reached in July of 3.1%. The released number of -0.8%, is higher than the forecasted rate of -0.5%, while the year-over-year read fell down to 0.1%. Inflation is set to drop even more in the coming months, as the huge drop in energy prices and the lower demand should dampen price increases.
Forex Technical Reaction: The Swissy had a weak reaction to the CPI release. Since the trading day had started, the pair tested TheLFB S2 (1.1780) but now is trading again near the Asian session opening price.