- USD/CHF consolidates in a narrow trading range near 0.9015 on the softer USD on Monday.
- The US Core PCE figures, rose 2.8% YoY and 0.3% MoM in February, matching the market estimation.
- ING analysts expect two more rate cuts this year from the SNB, unless there is a surprise that causes inflation to grow rapidly again.
The USD/CHF pair trades with mild negative bias around 0.9015 during the early European session on Monday. The dovish comments from Federal Reserve (Fed) Chairman Jerome Powell on Friday weigh on the US Dollar (USD) and cap the upside of the USD/CHF pair. The attention is shifted to the US March ISM Manufacturing Purchasing Managers Index (PMI), due later on Monday. The market is likely to stay subdued amid the Easter Monday bank holiday in Switzerland,
The recent inflation data was in line with market expectations in February, potentially keeping the Fed on hold before it can begin cutting interest rates this year. Market pricing is in line with Fed projections for three rate cuts, according to the CME Group’s FedWatch Tool. On Friday, the US Bureau of Economic Analysis reported that the Personal Consumption Expenditures Price Index (PCE) rose 2.5% YoY in February, in line with the market consensus. Meanwhile, the monthly PCE figure increased by 0.4% MoM in the same month, softer than expected. The Fed’s preferred inflation measure, Core PCE, rose 2.8% YoY and 0.3% MoM in February, matching the market estimation.
On the Swiss front, the Swiss National Bank (SNB) decided to cut the benchmark interest rate by 25 basis points (bps) to 1.5% on March 21. The SNB statement noted that the easing of monetary policy has been made possible because the battle against inflation over the past two and a half years has been effective. ING analysts expect two more rate cuts this year from the SNB, unless there is a surprise in the international economic environment that causes inflationary pressures to grow rapidly again.
The Swiss Consumer Price Index will be due on Thursday, which is expected to show an increase of 1.4% in March. If the Swiss CPI inflation data came in softer than expected, this could exert some selling pressure on the Swiss Franc (CHF). On Friday, investors will turn their attention to the US employment data, including the Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings for March.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.