Switzerland – Producer Price Index (PPI)
On Tuesday, at GMT 8:15 a.m., the Swiss Federal Statistical Office will release the month-over-month Producer Price Index (PPI), which measures the changes in the price of goods and raw materials bought by Swiss manufacturers during the previous month.
Binary options traders consider the Swiss Producer Price Index (PPI) to be a leading indicator of the consumer inflation because any substantial increase in the raw materials is passed on to the buyers of the finished products by manufacturers. Hence, an increase in PPI indicates rising prices at the consumer level, which contributes to overall national inflation.
Last month, the Swiss PPI (m/m) increased by 0.5% and the forecast for this month is that will likely increase by 0.2%.
United States – Retail Sales
On Wednesday, at GMT 1:30 p.m., the US Census Bureau will release the national month-over-month retail sales figure, which measures the changes in the total value of all sales made at the retail level in the country over the past month.
Retail sales data are considered by binary options investors to be the primary gauge of consumer spending and confidence. This is because when consumers are confident about their future financial situation, they tend to spend more.
Last month, the US retail sales value decreased by 1.6% and the forecast for this month is that it would likely remain unchanged at 0.0%.
Since breaking above the downtrend line on September 20, the USD/CHF remained bullish and the pair climbed up by around 330 pips over the last few weeks. However, after reaching near the 1.0025 level, it found a strong resistance and started a minor retracement. Currently, the USD/CHF is trading below this level but gradually approaching to test it once again.
As the US retail sales is likely to remain steady over the last month, but the Swiss PPI reading is expected to increase by only 0.2% in the last month compared to 0.5% in the previous month, we believe it would set a bullish fundamental outlook for the USD/CHF this week. Therefore, if the USD/CHF closes above the resistance near 1.0025, it would likely attract additional bullish momentum in the market.
Hence, US binary options traders should look out for trading opportunities above this major resistance level around 1.0025.