USD/CHF rebounded to 0.8520 after hitting a low of 0.84 on Aug. 29, a level not seen since the beginning of the year, notes DBS Senior FX Strategist Philip Wee.
Switzerland’s growth outlook will influence SNB’s inflation assessment
“On August 30, Swiss National Bank President Thomas Jordan said that Switzerland’s moderate growth outlook, coupled with the CHF’s gains, would influence the central bank’s assessment of inflation. Jordan also highlighted that the CHF’s strength represents a challenge for Swiss industry, especially given weak demand in Europe.”
“In June, the SNB forecast inflation at 1% or the midpoint of its 1-3% target range through Q1 2027. As a result, the market will be closely watching today’s CPI and GDP data for any downside surprises. The consensus is that CPI inflation eased to 1.2% y/y in August from 1.3% in July and that GDP growth improved to 1.5% y/y in Q2 2024 from 0.6% in Q1 2024.”
“The OIS market has priced in a 126% probability of a third 25 basis point rate cut to 1.00% at the SNB meeting on September 26.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
