USD/CHF Eyes Swiss CPI Data Amid Persistent Deflation Concerns

USD/CHF trades steady near 0.9050 ahead of Switzerland's key inflation report, with markets anticipating continued deflationary pressures. Swiss CPI Y/Y is expected to remain at -0.1%, maintaining negative territory for another month, while the M/M figure is projected at 0.0% versus 0.1% previously. Despite headline deflation, Core CPI holds at 0.5% Y/Y, providing some stability. The persistent deflation could pressure the Swiss National Bank to maintain its accommodative stance, potentially weakening the CHF. Technical indicators show USD/CHF consolidating within a 0.9020-0.9080 range, with a break above potentially targeting 0.9120 resistance. Traders should monitor the CPI release closely, as any surprise deviation could trigger volatility in CHF crosses. A worse-than-expected deflation reading might push USD/CHF higher, while any improvement in inflation metrics could strengthen the franc against major currencies.