USD/CHF held north of recent lows in the 1.2085 area today, finding buyers on dips to 1.2120/25. Demand for EUR/CHF as the new quarter got underway helped keep the Swissy relatively offered across the board today. The market took one quick shot to the downside after ISM came in soft at 50.9 in March but prices soon rebounded, ending the afternoon near 1.2150.
Elsewhere, the SNB's Hildebrand told local newspaper Tages-Anzeiger that Swiss monetary policy is "probably still expansive" and interest rates may have to rise further to keep future inflation in check. The Fed's Poole did not say US policy was expansive but did suggest several more rate hikes may be needed if inflation does not begin to fall. He favors core PCE around 1.5%, give or take 50 bp, well below recent reading of 2.4%.
The market continues to entirely ignore hawkish Fed speak but could be rudely wakened if payrolls rise near the top of the range of forecasts. Several have forecasts well above 200k. Geopolitics is playing a minor role in the fortunes of the Swissy. Iran stressed today it is looking for a diplomatic solution to the present crisis with the UK.
No comments:
Post a Comment