The Swiss franc traded near flat against the dollar and the euro on Monday as investors await key Swiss economic data, due later in the week, for clues about the health of the Swiss economy. Swiss consumer prices are seen rising at the fastest pace in nearly 15 years in July despite further signs that the economy is cooling, a Reuters poll showed.
"This week there is CPI and this should rise around 3 percent year-on-year and is likely to support the franc," said Raiffeisenbank forex analyst Ronald Plasser. Diverging inflation and growth trends are posing a major policy dilemma for the Swiss National Bank, which opted to leave interest rates unchanged in June, betting that the economic slowdown will dampen inflation. The franc traded nearly unchanged against the euro compared to Friday's New York close, trading at 1.6287 per euro.
Against the dollar, the franc was also near flat at 1.0369 per dollar following recent losses versus the greenback. The dollar rose after better-than-expected US data on capital spending and home sales late last week that lifted some of the gloom over the economy.
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