Swiss franc sharpens decline to five-week low

Economies.com
2023-05-17 11:06AM UTC

Swiss frank fell in European trade against dollar for another session, plumbing five-week lows following weak Swiss data, amid concerns about a rate hike by the Swiss National Bank next month.

 

The dollar on the other hand extended its strong run following bullish remarks by Fed officials, which bolstered the case for a Fed rate hike in June. 

 

Dollar rose 0.5% against Swiss frank to 0.9007, the highest since April 12, with a session-low at 0.8949.

 

Franc declined 0.1% yesterday against dollar, the third loss in four sessions as haven demand weakens. 

 

Swiss Rates

 

Recent Swiss data showed consumer prices rose 2.6% last month, approaching the 2% target set by the SNB.

 

Such developments reduced pressures on Swiss policymakers and hurt chances of a rate hike at the June meeting. 

 

Dollar

 

The dollar index rose 0.4% on Wednesday to a six-week high at 103.03, against a basket of major rivals.

 

After extensive talks, US President Joe Biden is approaching a compromise with House Republicans to raise the debt limit before the deadline.

 

Otherwise, Chicago Fed President Austan Goolsbee said it remains too early to talk about interest rate cuts, while Cleveland Fed President Loretta Mister said that stubborn inflation might pave the way for further changes in interest rate pricing.

 

Such remarks raised the chances for a 0.25% rate hike by the Federal Reserve at the June meeting from 20% to 22%.

Forex and Currency News

Forex News

Forex

Dollar hits six-week high ahead of US growth data
2024-03-28 11:38AM UTC
US Dollar's Rise in European Trade The US dollar rose in European trade on Thursday against a ...
EUR/USD news

Forex

Euro sharpens decline to five-week trough on the interest rate gap
2024-03-28 08:30AM UTC
Euro declined in European trade on Thursday against a basket of major rivals, sharpening losses for ...
Forex News

Forex

Dollar under pressure ahead of Christopher Waller's speech
2024-03-27 11:18AM UTC
The dollar declined in European trade on Wednesday against a basket of major rivals away from ...

Forex Technical Analysis

NZD USD Analysis

Forex

The NZDUSD price forecast update 28-03-2024
2024-03-28 10:19AM UTC
NZDUSD Price Analysis The NZDUSD price resumes its negative trading to move away from 0.6000$ ...
AUD USD Analysis

Forex

The AUDUSD price forecast update 28-03-2024
2024-03-28 10:19AM UTC
AUDUSD Price Analysis The AUDUSD price achieved initial break to 0.6500$ level and closed the ...
GBP USD Analysis

Forex

The GBPUSD forecast update 28-03-2024
2024-03-28 10:19AM UTC
GBPUSD Trading Analysis The GBPUSD price shows calm bearish bias to gradually approach our first ...