Tag Archives: 1.) FXStreet on SNB&CHF

It looks like G10 policy rates (ex-Japan) are going lower, ING’s FX analysts Francesco Pesole and Chris Turner note. EUR/CHF may struggle to stay above 0.95 “We are looking for at least another 125bp of ECB easing into next summer, if not 175bp. Switzerland is closer to the zero-bound constraint, however, and markets are reluctant to price the Swiss National Bank policy rate below 0.50% - just 75bp lower from current levels. Spread compression...

Even as speculative unwinds look largely done, rising geopolitical tensions in the Middle East and Russia should be watched as it could bolster safe haven demand for CHF and JPY, DBS FX & Credit Strategist Chang Wei Liang notes. SNB introduces a floor for EUR/CHF “Egypt’s aviation ministry instructed all airlines to avoid Iran airspace due to military drills, while Ukraine staged a surprise military incursion into Russia. We are cautious...

USD/CHF loses traction around 0.8590 in Thursday’s early European session, down 0.30% on the day.  The US Fed is expected to cut rates more aggressively beginning in September. Strong safe-haven demand benefits the Swiss Franc against the Greenback.  The USD/CHF pair drifts lower to near 0.8590 during the early European session on Thursday. The Swiss Franc (CHF) gains traction from the unwinding of carry trades and escalating geopolitical...

The US Dollar recovers for a second day in a row this week.  The BoJ dropped mixed messages on its monetary policy.  The US Dollar index pops above 103.00 and rallies higher on Wednesday.  The US Dollar (USD) recovers as all asset classes start to head back to more normal levels. Equities are behaving quite well and are stable, volatility is easing, and safe havens such as Japanese Yen (JPY) and Swiss Franc (CHF) are easing further against the...

The Pound Sterling falls against the US Dollar below 1.2700 amid weak appeal for risk-sensitive currencies. Investors worry that the US economy could enter a recession. The British currency will be guided by market speculation for BoE rate cuts. The Pound Sterling (GBP) extends its downside below 1.2700 against the US Dollar (USD) in Tuesday’s New York session. The GBP/USD pair weakens as the US Dollar steadies after rebounding from fresh...

USD/CHF holds positive ground near 0.8840 in Thursday’s early European session.  Fed’s Waller said that central bank is nearing rate cuts if there are no major surprises in inflation, employment data. The rate cuts expectation by the SNB might drag the US Dollar lower.  The USD/CHF pair trades on a positive note around 0.8840, snapping the two-day losing streak on Thursday during the early European trading hours. The modest rebound of the US...

USD/CHF gained ground as FOMC left its benchmark lending rate in the range of 5.25%–5.50% on Wednesday. Powell stated, “We don’t see ourselves as having the confidence that would warrant policy loosening at this time.” Swiss Franc may see limited downside as SNB is unlikely to implement a rate cut in June. USD/CHF retraces its losses from the previous session after the hawkish hold from the US Federal Reserve (Fed). The Federal Open Market Committee (FOMC) left its...

Gold rolls over after retesting key resistance as the outlook for US interest rates remains elevated.  This keeps the opportunity cost of holding non-yielding Gold high, making it less attractive to investors.  Gold (XAU/USD) trades a quarter of a percent lower on Tuesday after being rejected by key support-turned-resistance at $2,315 late Monday. Higher interest-rate expectations in the US are weighing on the precious metal. The release of better-than-expected US...

In Friday's session, the USD/CHF recovered surging above the 0.8965 mark. Strong Nonfarm Payroll data from the US propelled the USD across the board. US Treasury yields increased while the odds of a cut in September by the Fed slightly declined. The USD/CHF pair is seeing a boost after updated Nonfarm Payroll (NFP) figures from the US were released on Friday, surpassing market expectations. As market bets on the Federal Reserve may turn more...

Gold price declines after the release of US Nonfarm Payrolls data for May, shows a higher-than-expected change in employment and wages. Gold was already trending lower after data unveiling PBoC reserves showed no change in May compared to April.  Short-term technical picture remains volatile as Gold whipsaws higher and then lower.  Gold (XAU/USD) falls all the way back to the $2,310s on Friday after the release of US Nonfarm Payrolls (NFP) data...