The EUR/CHF pair attracts new buyers for the second consecutive day this Thursday, with the price rising to around 0.9381 during the European session. This momentum reflects a combination of lower Swiss inflation data and Eurozone retail sales that were below expectations, prompting investors to reassess the monetary policy outlook on both sides.

The Swiss Consumer Price Index (CPI) remained stable at 0.2% year-on-year in August, in line with expectations, but still reflecting a persistently moderate price pressure. On a monthly basis, the CPI fell by 0.1%, below expectations for a stable reading. These figures underscore the disinflationary environment that the Swiss National Bank (SNB) is facing, reinforcing market speculation that policymakers may take a more accommodative stance if domestic demand continues to weaken.

In the euro zone, retail sales in July fell by 0.5% on a monthly basis, a sharper contraction than the expected decline of 0.2%, and a notable reversal from the 0.6% increase in June. On a yearly basis, sales rose by 2.2%, but this figure is also below the forecasts of 2.4% and marks a slowdown from the previously recorded growth of 3.5%. The breakdown revealed declines in food and fuel consumption, while non-food products recorded only a marginal gain. This disappointing result indicates a weakening of household demand across the bloc, raising concerns about the sustainability of growth as inflation cools and external trade headwinds persist.

For the BNS, the latest publication of the CPI highlights the persistence of low price pressure, keeping the bank firmly in accommodative territory after cutting its key interest rate to zero in June. In contrast, the European Central Bank (ECB) faces a different challenge, with euro zone inflation slightly rising to 2.1% in August, alongside core inflation at 2.3%, even as retail sales show a weakening in consumption, leaving policymakers in a cautious wait-and-see approach.

To complete the table, the seasonally adjusted unemployment rate in Switzerland remained stable at 2.9% in August, reinforcing the idea that the labor market remains resilient despite moderate price pressures. In the euro zone, attention is focused on the second-quarter data expected on Friday, where employment is expected to increase by 0.1% compared to the previous quarter and by 0.7% year-on-year, while the Gross Domestic Product (GDP) is expected to grow by 0.1% quarter-on-quarter and by 1.4% year-on-year.