Swiss franc trading lower amidst SNB dovish statement
The Swiss franc was trading at a weaker note against the US dollar on November 5, 2015, after the inflation report showed that the economy was reeling under deflationary pressures in October.
The Swiss National Bank (or SNB) chairman Thomas Jordan made a dovish statement on Tuesday, stating that the Swiss franc remains significantly overvalued and that negative interest rates by the central bank along with intervention in the foreign exchange market will be important in driving the value of the safe-haven currency.
Inflation remains in negative zone through October
Swiss inflation continued to remain in the negative territory in October at -1.4% on an annual basis, releasing at forecasts and maintaining the same level of the previous month, September. On a monthly basis, however, a slight uptick of 0.1% was experienced in consumer prices. The prices of housing and accommodation remained low while the cost of food products and transportation fell at a slower rate. Consumer confidence in the fourth quarter came in at -18 against -19 in the previous quarter, missing the consensus estimates of a growth of -14.
Impact on the market
Swiss ADRs (American depositary receipts) were trading on a mixed note. ABB (ABB) rose 0.05%. In contrast, Logitech International SA (LOGI) fell by -0.15% and Credit Suisse Group AG (CS) fell by -0.73%.