6th Mar 2015 09:33
BRUSSELS (Alliance News) - The Swiss franc declined against its major rivals on Friday's early European deals, following the release of data showing fall in Swiss consumer prices at the fastest pace in nearly three years in February.
Figures from the Federal Statistical Office showed that Swiss consumer price index dropped 0.8% annually following 0.5% decline in January. Economists were looking for a 0.6% slump.
The latest fall in the CPI was the worst since June 2012, when it decreased 1.1%. Prices have fallen in every month since September, except October, when they were flat.
The CPI fell 0.3% from January, when prices declined 0.4%. It was the third decrease in a row. Economists had expected prices to remain flat in February.
Much awaited US jobs data for February, is due later today, which could provide a gauge on the strength of the world's biggest economy.
Economists expect the report to show an increase of about 230,000 jobs in February, down from 257,000 jobs in January and pushing the unemployment rate down to 5.6%.
Focus on the jobs report was heightened as it is one of the most important update on the labor market heading into the next Federal Open Market Committee meeting on March 17-18.
The franc depreciated to 0.9755 against the greenback for the first time since January 15. If the franc extends slide, 0.985 is seen as its next support level. The greenback-franc pair was valued at 0.9629 at Thursday's close.
Reversing from an early high of 123.54 against the yen, the franc slipped to nearly 2-month low of 123.06. On the downside, 122.00 is seen as the franc's next support area. The pair ended yesterday's trading at 123.23.
The franc fell by 0.2% against the pound to hit near nearly 2-month low of 1.4860. At yesterday's close, the pair was worth 1.4836. Continuation of the franc's downtrend may lead it to a support around the 1.50 zone.
The franc slipped to 1.0754 against the euro, a 3-day low, from an early high of 1.0712. The pair was worth 1.0738 when it closed yesterday's deals. On the downside, 1.2 is seen as the next possible support for the franc.
Looking ahead, US jobs data for February, trade balance and consumer credit - both for January are due in the New York session.
Copyright RTT News/dpa-AFX