Swiss Franc Jumps After Measured SNB Cut, Sterling Recovers after BoE
| Action Insight Mid-Day 6-19-25 |
Swiss Franc Jumps After Measured SNB Cut, Sterling Recovers after BoE |
Swiss Franc rebounded broadly on Thursday after SNB delivered a widely expected 25bps rate cut to 0.00%. Some trade had speculated on either a stronger dovish signal or even surprise action aimed at curbing Franc strength. Instead, SNB refrained from anything bold, and the post-meeting move in Franc reflected such disappointment. Also, in a global environment marked by elevated uncertainty, particularly with ongoing Middle East tensions, the safe-haven demand for the Swiss Franc remains intact. Meanwhile, Sterling also found some footing after BoE held rates steady at 4.25%. The 6-3 split on the Monetary Policy Committee leaned dovish, with three members voting for a cut. Still, the overall tone remains consistent with its “gradual and careful” easing stance. There was no sense of urgency in the statement, and policymakers continue to stress flexibility in the face of heightened geopolitical and inflation uncertainty. For the day so far, Swiss Franc is the strongest performer, followed by Sterling and Dollar. At the other end of the spectrum, Kiwi and Aussie lag, followed by Yen. Euro and Loonie are positioning in the middle. |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.8133; (P) 0.8153; (R1) 0.8184; More…. Intraday bias in USD/CHF stays neutral at this point. On the downside, break of 0.8152 minor support will argue that recovery from 0.8054 has completed after failing 0.8247 resistance. Deeper fall should be see to 0.8038/54 support zone. Firm break there will resume larger down trend to 61.8% projection of 0.9200 to 0.8038 from 0.8475 at 0.7757. Nevertheless, break of 0.8247 resistance will argue that corrective pattern from 0.8038 is starting the third leg. Bias will be turned back to the upside for 0.8475 resistance again. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | GDP Q/Q Q1 | 0.80% | 0.70% | 0.70% | 0.50% | | 01:30 | AUD | Employment Change May | -2.5K | 19.9K | 89K | 87.6K | | 01:30 | AUD | Unemployment Rate May | 4.10% | 4.10% | 4.10% | | 06:00 | CHF | Trade Balance (CHF) May | 3.83B | 5.85B | 6.36B | | 07:30 | CHF | SNB Interest Rate Decision | 0.00% | 0.00% | 0.25% | | 11:00 | GBP | BoE Interest Rate Decision | 4.25% | 4.25% | 4.25% |
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