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EUR/CHF drops to 1-week low

FXStreet (Córdoba) - The euro if falling against the Swiss franc for the third day in a row. EUR/CHF turned to the downside after the release of inflation data from the Eurozone, that came below expectations.

EUR/CHF below important level

During the Asian session the pair peaked at 1.0944 and then turned to the downside. On American hours initially dropped to 1.0890 that was an important short-term support area that capped the decline on Friday and also yesterday. Recently broke below.

EUR/CHF bottomed at 1.0887, the lowest level since last Wednesday and it was trading near 1.0890. A consolidation below the 1.0890 area could open the doors for a bigger decline Potential support levels are located at 1.0855 and 1.0840. On the opposite direction, if it rises clearly above 1.0890 it could remove short term pressure.

Lower inflation, back into negative territory

Yesterday German inflation data showed numbers below expectations and today the preliminary reading of the annual rate of the Eurozone in September also was lower than expected. The CPI y/y was -0.1%, below the consensus of 0.0%, while the core rate remained unchanged at 0.9%.

Inflation dropped back to negative territory and weakened the euro in the market. So far it is the worst performer among majors.

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