Swiss Franc Rises on Inflation Stabilization, Aussie Eyes GDP Data
| Action Insight Mid-Day Report 12-3-24 |
Swiss Franc Rises on Inflation Stabilization, Aussie Eyes GDP Data |
Swiss Franc strengthened broadly after inflation data for November indicated a modest uptick, stabilizing after months of decline. Although the annual CPI reading missed market expectations, the stabilization reduces immediate pressure on SNB to implement a significant 50bps rate cut at its upcoming policy meeting this month. However, uncertainty still lingers as SNB faces the challenge of balancing its decision against ECB's rate cut on the same day. A 50bps cut from ECB could drive upward pressure on the Franc, heightening deflationary risks for Switzerland and complicating SNB’s policy considerations. Meanwhile, Dollar and Yen, which have led currency markets this week, are retracing some gains. Traders are awaiting US JOLTs job openings data later today for potential short-term volatility. However, the focus remains on Friday’s non-farm payrolls report, a high-stakes release that could set the tone for broader market movements across stocks, bonds, and currencies. For the week so far, Yen is now the strongest performer, trailed closely by Dollar and and then Loonie. Sterling has displaced Euro as weakest currency, with Kiwi following in third-worst position. Swiss Franc and Aussie are holding middle positions.... |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.8814; (P) 0.8852; (R1) 0.8903; More… USD/CHF dips notably today but stays in established range below 0.8956. Intraday bias remains neutral at this point. With 0.8800 support intact, further rally is still in favor. On the upside, break of 0.8956 will resume the rally from 0.8374, and target 0.9223 key resistance next. However, firm break of 0.8800 will confirm short term topping and turn bias back to the downside for 55 D EMA (now at 0.8731). | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:45 | NZD | Terms of Trade Index Q3 | 2.40% | 1.80% | 2.00% | | 23:50 | JPY | Monetary Base Y/Y Nov | -0.30% | 0.20% | -0.30% | | 00:30 | AUD | Current Account (AUD) Q3 | -14.1B | -10.8B | -10.7B | -16.4B | | 07:30 | CHF | CPI M/M Nov | -0.10% | -0.10% | -0.10% | | 07:30 | CHF | CPI Y/Y Nov | 0.70% | 0.80% | 0.60% | | 15:00 | USD | JOLTS Job Openings Oct | 7.49M | 7.44M |
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