CHF: Limited space for SNB easing – Danske Bank

FXStreet Insights Team FXStreet

The big event for CHF this week is the SNB meeting on Thursday, Danske Bank's FX analyst Jens Nærvig Pedersen reports.

SNB to cut the interest rate by 25bp cut to 0.25%

"We expect a 25bp cut to 0.25%. This is in line with consensus and markets price in around 20bp for the meeting. We believe it is a close decision amplified by the recent weakening of the CHF and the limited space left for easing."

"Ultimately, we believe that the very muted inflationary pressure with headline currently around 0.3% y/y will leave the SNB opting for a cut. We continue to be bullish on CHF an expect the recent weakening to prove temporary."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD retakes 1.1650 ahead of Fed rate decision

EUR/USD grinds higher to re-attempt the 1.1650 level in the European session on Wednesday. Markets turn cautious and dump the US Dollar ahead of the US Federal Reserve interest rate decision later on Wednesday, where a 25 bps rate cut is almost fully priced in. Meanwhile, cautious ECB-speak underpins the Euro.

GBP/USD gains ground above 1.3300, eyes on Fed outcome

GBP/USD trades on a firmer note above 1.3300 European session. The Greenback edges lower against the Pound Sterling as the US Federal Reserve is widely expected to announce another interest rate cut on Wednesday. Next of note will be the UK monthly Gross Domestic Product (GDP) report that will be published on Friday.

Gold bulls remain on the sidelines despite weaker USD; looks to Fed for fresh impetus

Gold extends its sideways consolidative price move through the early European session and trades just below the weekly high touched earlier this Wednesday. Traders now seem reluctant and opt to wait for the outcome of a two-day FOMC policy meeting later today. The key focus will be on updated economic projections and Powell's speech