Tag Archives: 1) SNB and CHF

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...

USD/CHF is rising within a range-bound market.  It has encountered resistance at a cluster of MAs but will probably continue higher. USD/CHF is rising up within its sideways range. It has reached a cluster of major Moving Averages which are providing firm resistance.  USD/CHF 4-hour Chart  The trend is neither up nor down but rather sideways and so the oscillating character of the market is likely to extend, given the principle that “the...

The figures published yesterday morning on the Swiss National Bank's (SNB) foreign exchange market operations in the second quarter confirmed what the statements made at the last press conference had already indicated, Commerzbank’s FX analyst Michael Pfister notes. SNB reluctant to take action against the strong franc “For the time being, the SNB appears to be continuing to rely mainly on the key interest rate as its preferred instrument, with...

Israel announced a “limited” ground operation against Hezbollah targets in the border area of southern Lebanon, sending its soldiers across the border, per local news agency Aljazeera. Israeli warplanes carried out massive strikes on Beirut’s southern suburbs after civilians were ordered to leave. At least 95 people were killed on Monday by Israeli attacks on Lebanon.  Market reaction At the time of press, the Gold price was up 0.02% on the day...

Israel’s killing of Hezbollah leader Hassan Nasrallah has further fuelled geopolitical tensions in the Middle East and intensified the war at its border with Lebanon. The Iran-backed militant group says it will continue to fight, even as a growing number of senior Hezbollah figures have been killed, per CNN.Airstrikes hit Beirut in the early hours of Monday morning, marking the first time attacks landed within the city limits of the Lebanese...

Gold rebounds at the end of the week after the release of US PCE inflation data comes out lower than expected.  The data suggests a continuation of the Fed's monetary easing stance which is a positive factor for Gold.  Gold price retreats as less dovish interest rate prospects and a stronger US Dollar are bearish.  Gold (XAU/USD) recovers to trade in the $2.660s per troy ounce on Friday after the release of US PCE inflation data fails to meet...

The Swiss National Bank’s third interest rate cut did not push USD/CHF out of its month-long range between 0.84 and 0.8550, DBS’ FX analyst Philip Wee notes. SNB does not want EUR/CHF to find new lows “SNB lowered the policy rate by 25 bps to 1.00% and kept the door open for more easing in the coming quarters on its new forecast for inflation to decelerate to 0.6% in 2025 from 1.2% in 2024.” “In June, SNB projected a modest slowdown in...

USD/CHF is trading lower within a range formed since August.  It is in a sideways trend and a decisive breakout would be required to give directionality.  USD/CHF continues trading up and down within a range. It is probably in a sideways trend, which given the principle that “the trend is your friend” is likely to endure. USD/CHF 4-hour Chart    USD/CHF is currently moving down within the range and it will probably reach at least as far as...

Indian Rupee gathers strength in Wednesday’s early European session.  Improved risk appetite and a weakening USD support the INR.  Investors await the US August New Home Sales and Fed’s Kugler speech on Wednesday.  The Indian Rupee (INR) edges higher on Wednesday. Improved risk appetite following China’s stimulus measures and the softer US Dollar (USD) boost the local currency on the day. Nonetheless, rising crude oil prices, outflows related...

Pair bottomed at a low of 0.8375 and then recovered above 0.8400 but holds daily losses. US August NFPs came in lower than expected, following this weak labor market data trend. Investors might bet on a bigger cut in September from the Fed. On Friday, the USD/CHF fell to a daily low of 0.8375 and then recovered back above 0.8400. The upside, however, is limited as the US reported weak labor market figures. The US Dollar’s appeal diminished...