Swiss Franc edges up after inflation data

Swiss Franc rose in European trade on track for the first profit in three days against dollar following Swiss inflation data, which rose past estimates in January.

The data raised pressures on Swiss National Bank policymakers, and bolstered the case for a 0.5% rate hike in March.

The dollar fell 0.2% against the franc to 0.9219, with a session-high at 0.9260.

The franc closed Friday down 0.15% against dollar, as the greenback muscled up against major rivals following positive US confidence data.

Swiss Inflation Data

Swiss consumer prices rose 3.3% in January, passing estimates of 2.9%, and up from 2.8% in December.

On a monthly basis, consumer prices rose 0.6% in January, past estimates of a 0.5% rise, and compared to December's 0.2% dip.

Swiss National Bank

Such data showed upward risks of inflation and raised the pressure on the central bank to hike interest rates by a successive 0.5% pace at next meetings. 

Swiss interest rates are currently stable at 1%, the highest since 2008, and becoming the the penultimate rates presented by major central banks worldwide.

Forecasts for 2023

Analysts expect the franc to remain strong in 2023 due to the flexible local economy and relatively low inflation compared to rivals.

The Swiss National Bank is expected to continue supporting the franc by successive rate hikes, wit analysts noting that the franc hasn't actually risen significantly past its 10-year average values.