Swiss Franc: Low inflation keeps range intact versus US Dollar – BBH
Brown Brothers Harriman’s (BBH) Elias Haddad notes that Swiss inflation remains comfortably within the Swiss National Bank's (SNB) price stability definition, with May Consumer Price Index (CPI) expected to stay subdued. This allows the SNB to keep rates at 0.00% for an extended period, even as markets price some tightening. Haddad expects USD/CHF to remain confined to a tight 0.7760–0.7910 range in the near term.
SNB patience anchors Franc range
"Switzerland May CPI is due Thursday. Headline CPI is expected at 0.7% y/y vs. 0.6% in April while core CPI is expected at 0.3% y/y for a second straight month."
"The Swiss National Bank (SNB) forecasts headline CPI to average 0.5% y/y in Q2."
"Overall, inflation remains well within the range of price stability of less than 2% per annum. As such, the SNB can afford to keep rates at 0.00% for some time."
"The swaps curve price-in 76% odds of a 25bps rate hike to 0.25% in the next twelve months. USD/CHF will likely remain trapped within a tight 0.7760-0.7910 range in the near-term."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Aptos insider vesting ends, cutting APT unlocks by 60%
US Treasury yields soar to a 24-year high; US Treasury advisors expect future declines as AI investments and energy shocks drive up borrowing costs
David Zervos, senior advisor to U.S. Treasury Secretary Yellen and a veteran Wall Street professional, stated on Thursday that despite the recent surge in U.S. Treasury yields to their highest levels in decades, the current real yields are significantly elevated compared to historical levels, suggesting room for a decline in the future.
St. Louis Fed President: Further rate hikes needed over the next 6 to 9 months; inflation remains the top issue for the US economy
St. Louis Federal Reserve President Musalem said on Thursday that the Federal Reserve still needs to raise interest rates further in order to bring U.S. inflation back to the 2% target in a timely manner.
Trump's tariffs increase U.S. consumer costs: New York Fed reports prices of related goods up nearly 3%, impact may last until 2027
The latest research by the Federal Reserve Bank of New York shows that the tariff policies implemented by U.S. President Trump have significantly increased the cost for American consumers to purchase everyday goods.
Crypto prices
More
