The EURCHF exchange rate has data ahead of Tuesday as the pair seeks to mount a rally after a recent weakness.
EURCHF – Daily Chart
The price of the EURCHF exchange rate has bounced from the lows near 0.925, which could be setting a double bottom from the lows of 2024. A push to test the 0.9500 level is needed.
The European currency has been on a downward slump from highs set in May 2024. That took prices down to the lows of late-2023, and we now have a second test of support. Recent fears over French bond spreads appear to have receded for the moment after the appointment of another Prime Minister. The Swiss currency is often used as a safe haven in troubled times, and some profit-taking or short-covering appears to be in play.
Tesla supplied 495,570 automobiles in the fourth quarter, which was up 2.3% over the previous quarter, but Q4 is always a strong quarter. The number fell short of revised Wall Street projections of 498,000. Analysts also noted that Tesla’s average sales price dropped to $41,000 during the quarter, its lowest in four years. That could affect the company’s margins, which have struggled since the price war started.
Data on Tuesday starts with the 15:30 pm HKT release of Swiss CPI data, where consumer prices are expected to be down from 0.7% in November to 0.6% for December. A lower number could see the euro improve against the Swiss franc. Similar data for the French economy is expected to show a slight increase on a monthly basis from 1.7% to 1.9%.
Consumer prices will be released for the European economy and are expected to show a 2.7% year-on-year increase. That will be the same as last month, but any sign that European prices are more stubborn than those in Switzerland can show some strength in the euro. European unemployment will be released at the same time.
Retail sales are released for Germany at 3 pm HKT on Wednesday and could also add some fuel to the euro if consumers in Europe’s largest economy can bounce back.
“We have made significant progress in 2024 in bringing down inflation and hopefully 2025 is the year when we are on target as expected and as planned in our strategy,” ECB President Christine Lagarde said on X last week. Some economists have criticised the bank for being too slow with rate cuts, and any inflation dip will increase calls to cut again.
