Switzerland's inflation rate dropped to 0.4% year-on-year in January, raising concerns at the Swiss National Bank (SNB). As inflation edges closer to the lower end of the bank's target band of 0% to 2%, there is speculation that the SNB may consider a rate hike in March. Meanwhile, the Swiss Franc regained stability on Friday after a 1.1% slide on Thursday.
The decline in inflation comes amid a projected decrease in annual retail sales in Switzerland, expected to dip to 3.7% after a 3.9% gain in December. This economic backdrop is prompting the SNB to closely monitor inflation trends, with the possibility of monetary policy adjustments should inflation approach zero.
In the United States, the dollar retreated against major currencies on Thursday following the White House's announcement that reciprocal tariffs would not be imposed before April 1. The US Producer Price Index (PPI) showed minimal change in January, with an annual increase of 3.5%, consistent with December's revised figures and exceeding market expectations of 3.2%.
Across the Atlantic, the Euro area reported a slight GDP growth of 0.1% in the fourth quarter, an improvement from the previous estimate of zero growth. The EUR/USD pair maintained positive momentum, trading above 1.0450 on Friday. Gold prices held steady after significant gains on Thursday, remaining close to the record-high set earlier in the week above $2,940.
In financial markets, Binance Coin (BNB) experienced robust trading activity, with volumes reaching 5.13 billion. The long-to-short ratio for BNB also hit its highest level in over a month, reflecting increased investor interest.
As the week concludes, attention turns to the US retail sales report for January, which will provide further insights into consumer spending trends. Meanwhile, the benchmark 10-year US Treasury yield stabilized above 4.5%, limiting potential gains for XAU/USD at present.