The euro traded little changed against the Swiss franc on Tuesday before the ZEW Institute publishes data regarding economic sentiment in Germany and the Euro zone as a whole.
EUR/CHF slipped to a daily low at 1.2150 at 7:50 GMT, after which consolidation followed at 1.2153, down a mere 0.02% for the day. Support was likely to be found at March 17th low, 1.2133, while resistance was to be encountered at March 13th high, 1.2168.
The gauge of economic sentiment for Germany probably slowed down to a reading of 51.8 in March, according to the median estimate by experts. Last month the index came in at a value of 55.7.
The index of economic sentiment for the Euro zone probably fell to 67.3 this month from 68.5 in February. The official results from the monthly survey by the ZEW (Zentrum für Europäische Wirtschaftsforschung) are to be announced at 10:00 GMT today.
Meanwhile, yesterday the annualized rate of consumer inflation in the single currency zone was reported to have weakened in February, which may put pressure on the European Central Bank to introduce new measures in order to spur economic growth.
The annualized HICP came in at 0.7% last month, a level last seen during October 2013, which was still far below central bank’s inflation objective of 2%, that provides price stability. Experts had anticipated that the annual inflation rate will remain steady at 0.8% in February.
On the other hand, safe haven demand for the Japanese yen and the Swiss franc was likely to be heightened, as Russias President Vladimir Putin said that he supported a request from Ukraine’s breakaway region of Crimea to join the Russian Federation, regardless of the imposed sanctions by the United States and the European Union.
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