Newly-minted Chairman of the Swiss National Bank (SNB) Martin Schlegel hit newswires on Tuesday, cautioning that further rate cuts haven’t been ruled out. The incoming Chairman of the SNB officially took the reins of Switzerland’s central bank on early Tuesday, and has inherited a central bank still caught in the wake of last year’s lopsided management of the merger between 167-year-old Credit Suisse and UBS.

Key highlights

The services sector is solid and the industrial sector subdued.

I expect Swiss growth to be subdued in coming quarters.

The biggest risk for Swiss economy is developments abroad.

Last week we did not rule out further interest rate cuts.

We cannot rule out negative rates at the moment, we rule nothing out.

Reason for

EUR/CHF up over 3% from December’s lows.
ECB President Lagarde looks ahead to growth rebound.
Swiss Franc is broadly weaker across the majors market.
EUR/CHF knocked into fresh multi-month highs on Monday as the pair steps into a ten-week peak above 0.9550. The Swiss Franc (CHF) has depreciated notably against the majority of its major currency peers in 2024, and is down 2.88% YTD against the Euro (EUR).
European Central Bank (ECB) President Christine Lagarde hit the newswires on Monday while speaking about the ECB’s latest Annual Report in Strasbourg. The ECB head noted that the ECB expects inflation to continue slowing as the upward momentum from past shocks fade. It has been almost three straight years since the start of inflation the ECB initially called

Share:

The Swiss Franc is testing further high ground against the US Dollar on Thursday.
Risk appetite is cranking up after US inflation data tips lower.
US Dollar declines across the board ahead of the holiday market wrap.
The USD/CHF slipped through the 0.8600 handle on Thursday as broader markets push over the US Dollar (USD), bolstering all other major currencies across the board and lifting the Swiss Franc into a new twenty-week high against the Greenback.

US inflation figures missed expectations on Thursday, coming on below forecasts and sparking a risk appetite rally as price growth deceleration takes hold in the US faster than most market