Over the 7/6 European session, there were a few releases worth noting.
1) Switzerland increases foreign currency reserves from an upwardly revised 305.9B CHF in May, to 365.9B CHF in June. This shows that the SNB has been intervening in the FX market. Also note from list of previous releases that the reserves have been expanding since August 2011. The SNB imposed the EUR/CHF floor of 1.20 during September of 2011.
Source: Forexfactory *SMQ is a measure of how much the CHF moved in the 2 hours subsequent to the release.
2) Swiss month-to-month inflation data came in at -0.3% in June, after a flat reading in May.
3) UK’s Producer Price Index for June came in at -2.2% after a downwardly revised -2.6% in May. For April, we had a -1.5% reading. This data suggests that CPI data will also be curtailed, confirming the BoE’s ability to expand its QE program.
4) German Industrial Production data for May came in at 1.6%, surprising forecast of 0.2%. This is a reversal from the -2.1% for April. Going back however, manufacturing data has been very mixed.
Fan Yang CMT is a forex trader, educator and Chief Currency Analyst of FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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