Swiss CPI, US election may trick or treat franc
Oct 31 (Reuters) -The franc could be tricked or treated by risk events including Swiss inflation data on Friday and the U.S. presidential election next week.
The franc might weaken if Swiss CPI for October, due at 0730 GMT, comes in cooler than the 0.8% YY forecast, as this would get doves cooing for the Swiss National Bank to cut interest rates by 50 basis points to 0.5% in December.
Any such CHF weakness on the inflation data may prove fleeting if Tuesday's U.S. election triggers buying of the safe-haven franc. SNB Chairman Martin Schlegel on Wednesday said the central bank stands ready to intervene in FX markets to check any appreciation pressure on the CHF should that happen.
Data published on Thursday showed the SNB posted a profit of 3.08 billion francs from its foreign currency holdings during the third quarter. The franc value of those holdings is more than CHF 700 billion.
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Robert Howard is a Reuters market analyst. The views expressed are his own; Editing by Alison Williams
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