Swiss franc little changed after CPI data

The Swiss franc traded slightly below 0.80 per USD, amid a subdued dollar and after fresh domestic inflation data provided mixed signals about the Swiss National Bank's (SNB) policy stance.

Swiss inflation stood at 0.2% for the third consecutive month in September, slightly undershooting forecasts of 0.3%.

On a monthly basis, prices declined by 0.2%, after a 0.1% fall in August and matching analysts' estimates.

The data follow the central bank’s September decision to keep its key interest rate at 0% after six consecutive cuts, and recently indicated that inflation is expected to gradually rise in the coming months.

SNB policymakers have been reluctant to push rates below 0% to avoid hurting the financial system, though the option remains on the table.

Although the majority of economists see the SNB’s easing cycle as over, some anticipate a possible rate cut in December should the franc hold its strength.