Usdchf Trades Low On Weak Usd

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Usdchf Trades Low On Weak Usd

Usd/Chf Trades Close To 0.911 On Weak Us Dollar

Thomas J. Jordan, the chairman of the SNB, recently shared his views at the shareholders' general meeting. According to Mr. Jordan, the SNB is looking at the inflation situation closely & will adjust the monetary policy if required.

This means the SNB has also adopted a data-oriented approach when it comes to managing inflation, interest rate, growth rate, & other key economic metrics.

Snb Keeps 1.5% Policy Rate

Back in March 2024, the Swiss National Bank (SNB) surprised the markets with a 0.25% rate cut. After the rate cut, the policy rate in Switzerland is now standing at 1.5%. The SNB was also one of the few central banks from the West that delivered an early rate cut.

According to the SNB chairman, they have been successful in their efforts to curb inflation. However, he also talked about how the uncertainty is still at elevated levels. This means shocks can happen at any time & thus the SNB stands ready to adjust the policy when needed.

He also stressed the need to focus on inflation and ultimately achieving stability. When it comes to inflation, the SNB should not be sidetracked.

As for the market demand for the SNB to take on additional responsibilities and broaden the mandate, he cited that these demands are dangerous.

The comments from the SNB chairman pushed the USD/CHF lower mainly due to subdued demand for the US Dollar. It appears that the weak Q1 GDP is still keeping the greenback under pressure. After all, it has now casted serious doubts about the economic situation of the USA.

Up ahead, the USD/CHF will be looking for cues from the US core PCE release which will shed some light on the US inflation. The thing which makes this data release so important is that even the Fed prefers to use this metric for guaging inflation.

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