Release Explanation: The PPI measures the rate of inflation of manufacturers when purchasing Goods and Services; the rate of Inflation at the factory Gate. “An increase in the price of raw Goods and services usually gets passed on to the consumer, therefore this is the first stage on Retail Inflation.” TheLFB-Forex.com Trade Team said.
TheLFB-Forex.com Trade Desk Thoughts: The Producer Price Index in Switzerland decreased in March from one month earlier by a 0.5%, much more than expected. The Swiss PPI shows deflation, for the time being, after producer inflation reached a new record in previous quarters. March is the eight consecutive month in which the inflation rate has slowed being dragged lower by the huge declines in the energy market. From one year earlier, the PPI stands at -2.8%, while the import price sub-index shows a -6.7% read.
Forex Technical Reaction: The swissy had a weak reaction during the news release. Since the Asian session began, the swissy rose 30 pips.