{"id":134321,"date":"2018-09-25T10:45:28","date_gmt":"2018-09-25T14:45:28","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=134321"},"modified":"2018-09-25T06:57:36","modified_gmt":"2018-09-25T10:57:36","slug":"eurchf-forex-analysis-inflation-may-accelerate-in-the-eurozone","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/09\/eurchf-forex-analysis-inflation-may-accelerate-in-the-eurozone\/","title":{"rendered":"EURCHF Forex Analysis – Inflation may accelerate in the Eurozone"},"content":{"rendered":"
September 25, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

Inflation may accelerate in the Eurozone<\/strong><\/p>\n

Mario Draghi, president of the ECB, said that he expects inflation to accelerate in the Eurozone. Amid this, the euro rose to a 3-and-a-half-month high against the US dollar. Will the EURCHF<\/a> rise? Their increase means the strengthening of the euro against the Swish franc.<\/p><\/blockquote>\n

The strengthening of the euro occurs due to market participants\u2019 expectations that the ECB will begin to tighten monetary policy alongside with the increase in inflation. Mario Draghi confirmed the plans of his department to reduce the volume of asset purchase within the framework of the current quantitative easing program from 30 billion euros a month to 15 billion euros in October 2018. The program itself must be completed this year. Unlike the ECB, the National Bank of Switzerland (NBS) said at its regular meeting on September 20 that it was not going to raise the rate and would continue its ultra-loose monetary policy. Let us recall that the SNB rate is the lowest in the world and is minus 0.75% with 1.2% inflation. The ECB rate is zero with 2% inflation. Preliminary data on inflation (HICP index) in the Eurozone for September will be published on September 28. The consumer price index in Switzerland will be released on October 5. These data may affect the dynamics of the EURCHF currency pair.<\/p>\n

\"EURCHF\"<\/p>\n

On the daily timeframe, EURCHF: D1<\/b> exceeded the resistance line of the falling channel. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of an increase in inflation in the Eurozone and the statements of the ECB about the possible tightening of the monetary policy.<\/p>\n