Created
: 2024.04.04
2024.04.04 17:18
The USD/CHF pair rallies to 0.9070 in the European session on Thursday. The Swiss Franc asset strengthens as softer-than-expected Switzerland Consumer Price Index (CPI) data for March has boosted expectations of one more interest rate cut by the Swiss National Bank (SNB).
Among developed economies, the SNB has led the rate-cut cycle after reducing interest rates by 25 basis points (bps) to 1.5% in the monetary policy meeting on March 21.
Federal Statistical Office of Switzerland has reported that the monthly consumer price inflation remains stagnant while investors anticipated an increase of 0.3%. In February, price pressures rose by 0.6%. Annually, inflationary pressures surprisingly grew at a slower pace of 1.0%. Economists expected the consumer price inflation to grow at a higher pace of 1.3% after rising 1.2% in February.
Meanwhile, the US Dollar has extended its downside as weak United States Services PMI for March has dented the economic outlook. The US Dollar Index (DXY), which tracks the US Dollar's value against six major currencies, falls to 104.12.
The Institute of Supply Management (ISM) reported that the Services PMI fell to 51.4 from expectations of 52.7 and the former reading of 52.6. Also, subindexes such as New Orders and Prices Paid eased significantly.
Going forward, investors will focus on the US Nonfarm Payrolls (NFP) data for March, which will be published on Friday. US employers are anticipated to have recruited 200K workers, lower than the former reading of 275K.
Created
: 2024.04.04
Last updated
: 2024.04.04
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