Into European trading and USD/CHF had edged back above 1.2200 (1.2206 the high) but Swiss inflation numbers forced a bout of profit-taking from macro names before the Dollar rally continued. Stops above 1.2225 have been threatened all session but have yet to be triggered.
More offers are noted into 1.2240/50 and short-term bulls now look for a retest here. Elsewhere, dealers await the ECB verdict for support for the Euro and de facto the Franc. Looking ahead, Swiss inflation data has highlighted the benign nature of price pressure in the mountain economy at present. February CPI came in below expectations at +0.2% M/M and Unch Y/Y (+0.2% & +0.4% Forecast), however, few see the numbers impeding the SNB "normalization path".
The SNB will widely expected to announce a 25bp hike on March 15th but where we go from there is beginning to be the source of much debate. In their post-Swiss data research note one Swiss players touted the prospect of a Q2 hike as a "toss up". The name in question is still opting for another 25bp hike in June but much will be data and other external factor dependant.
No comments:
Post a Comment