Yesterday’s upbeat CPI data across the Eurozone failed to lift the Euro as forex traders are focused on developments in the Middle East. The EURCHF remained stuck in its horizontal support area, awaiting more details. Today’s Eurozone CPI is expected to show tame inflationary pressures, an ongoing headache for the ECB. On the bright side, retail sales are anticipated to post a healthy increase. How will this impact price action in this currency pair? Today’s fundamental analysis will take a look at price action in both directions.

The Swiss Franc capitalized on the rise in tension after the US killed a key Iranian general in Iraq. Safe-haven demand pressured price action into a strong support area. CPID data out of Switzerland is likely to show deflationary pressures despite the SNB’s ultra-loose monetary policy and lowest interest rates in the financial market. Will it force the EURCHF into a breakdown or can price action reverse? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.