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EUR/CHF popped back above parity last week but slipped below 0.9950 again on Monday. The 0.9840/0.9830 area is crucial support, analysts at Société Générale report.

New high for core inflation cements 50 bps at next SNB meeting

“CPI again surprised to the upside in February. This could seal another increase in the policy rate of 50 bps at the meeting in two weeks. The headline rate was unchanged at 3.2% YoY but core CPI drifted up to a new high of 2.4% from 2.2%.”

“Currently, a pullback is taking shape however 50-DMA at 0.9920 should be first support.”

“In case the pair overcomes 1.0040, the bounce could extend towards January high of 1.0100 and 1.0220.”

“Only if recent low at 0.9840/0.9830 gets violated would there be a risk of a deeper downtrend.”