This article was posted before the SNB revised economic forecasts
BENGALURU, March 18 (Reuters) – The Swiss National Bank will wait until at least June before cutting interest rates, according to a strong majority of economists polled by Reuters, who said it would make shallower cuts this year than peers.
The SNB may choose to wait on the sidelines until the U.S. Federal Reserve and European Central Bank start cutting interest rates, widely expected in June, to prevent further weakness in the Swiss franc.
SNB to wait until at least June before cutting rates modestly – Reuters poll
March SNB MPA preview: A very close call
The consensus is no change but there is significant speculation that the SNB might announce a 25 basis point cut in its policy rate at Thursday’s Monetary Policy Assessment (MPA). Further falls in already low inflation combined with a strong Swiss franc would seem to have opened the door to what would be the first reduction in the benchmark rate since January 2015 when the central bank also abandoned its minimum exchange rate policy. Currently the rate stands at 1.75 percent, its highest mark in 15 years. However, probably more than most other major central banks, the Swiss monetary authority has acquired a habit of surprising forecasters and most investors seem far from convinced that an ease will come as soon as this week….Econoday
USDJPY 4 Hour Chart
BoJ’s decision to hike rates and end the era of negative interest rates was not a surprise. Indications of a go-slow approach make this a dovish hike and the JPY has responded accordingly.’
USDJPY targeting 150.85 if it can stay above 150.25-50, with a stronger risk if above 150.57.
If I was in the BoJ’s shoes I would be lurking above 150.50 but only to smooth the move and prevent a full rout by defending 150.85(?).
Note prior USDJPY uodate was deleted in error.
Swiss govt released revised economic forecasts
2024 CPI lowered to 1.5% vs prior 1.9%
This comes ahead of the SNB rate decision on Thursday
Swiss govt released revised economic forecasts
2024 CPI lowered to 1.5% vs prior 1.9%
This comes ahead of the SNB rate decision on Thursday
USDCHF Analysis: Continued Upside Momentum and Key Resistance Levels
USDCHF has further advanced its upward trajectory from 0.8729 to reach a peak of 0.8884, encountering resistance at the previous high of 0.8892.
A breakout above this critical level would indicate a continuation of the uptrend that initiated from the low of 0.8332 on December 28, 2023, with the next target set at the 0.9000 area.
The initial support level to watch is at 0.8815. If the price breaks below this level, it could potentially trigger another descent towards 0.8700.
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