CHF/SEK settles above 2-week low, posts weekly loss

The CHF/SEK currency pair settled above recent low of 11.7265, its weakest level since September 17th, after data showed Swiss CPI inflation had remained stable.

Consumer prices in Switzerland went up 0.2% year-on-year in September, matching the rate in the prior two months. The latest figure came below market consensus.

The Swiss National Bank had said it forecast average inflation at 0.2% for 2025.

The SNB left its policy rate without change at 0% at its September 25th meeting. This way, borrowing costs remained at their lowest level since August 2022.

The central bank also signaled openness to more rate cuts in case deflation returns.

Meanwhile, Sweden’s services sector has recorded the strongest growth since August 2022 in September, the latest data by Swedbank showed.

The Services Purchasing Managers’ Index was reported at a reading of 57.7 in September, up from a revised up 53.8 in August.

“The service sector has had difficulty establishing itself in the growth zone but is now showing signs of a clear recovery, although the September outcome should not be overinterpreted. Lower interest rates from the Riksbank and an expansionary fiscal policy may in the long term lift the service sector, something that may be reflected in the strong September figures,” Swedbank analyst Jörgen Kennemar said.

The exotic Forex pair lost 0.07% for the week.