Swiss Franc Tumbles on SNB Cut; Sterling Falters as Hawks Retreat
| Action Insight Mid-Day Report 3-21-24 |
Swiss Franc Tumbles on SNB Cut; Sterling Falters as Hawks Retreat |
Swiss Franc is trading as the day's most significant loser in the wake of SNB's surprising decision to cut interest rates. This move, along with a substantial downward revision of inflation forecasts, is seen by some economists as a strategic effort by SNB to alleviate the burden of a high exchange rate on Switzerland's export-driven economy. Speculation is rife among economists about the possibility of another rate reduction in June, particularly if ECB commences its policy easing by then. British Pound also faced downward pressure as the second worst performer, following BoE decision to maintain its interest rate unchanged. Notably, two previously hawkish members abandoned their stance on calling for a hike. Yet BoE provided no definitive guidance on rate reductions. Despite some progress in reducing inflation, service sector prices continue to be a concern, remaining stubbornly high... |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.8846; (P) 0.8882; (R1) 0.8905; More.... USD/CHF's rally resumed after drawing support from 55 4H EMA, and breaks through 0.8917. Intraday bias is back on the upside. Next target is 100% projection projection of 0.8550 to 0.8884 from 0.8728 at 0.9062. On the downside, below 0.88338 minor support will turn intraday bias neutral again. But still, outlook will remain bullish as long as 0.8728 support holds. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:45 | NZD | GDP Q/Q Q4 | -0.10% | 0.00% | -0.30% | | 22:00 | AUD | Manufacturing PMI Mar P | 46.8 | 47.8 | | 22:00 | AUD | Services PMI Mar P | 53.5 | 53.1 | | 23:50 | JPY | Trade Balance (JPY) Feb | -0.45T | -0.85T | 0.24T | 0.01T | | 00:30 | JPY | Manufacturing PMI Mar P | 48.2 | 47.5 | 47.2 | | 00:30 | AUD | Employment Change Feb | 116.5K | 40.2K | 0.5K | 15.3K | | 00:30 | AUD | Unemployment Rate Feb | 3.70% | 4.00% | 4.10% | | 07:00 | GBP | Public Sector Net Borrowing (GBP) Feb | 7.5B | 5.2B | -17.6B | -17.0B | | 08:15 | EUR | France Manufacturing PMI Mar P | 45.8 | 47.3 | 47.1 | | 08:15 | EUR | France Services PMI Mar P | 47.8 | 48.6 | 48.4 | | 08:30 | EUR | Germany Manufacturing PMI Mar P | 41.6 | 43.5 | 42.5 | | 08:30 | EUR | Germany Services PMI Mar P | 49.8 | 48.9 | 48.3 | | 08:30 | CHF | SNB Interest Rate Decision | 1.50% | 1.75% | 1.75% | | 09:00 | CHF | SNB Press Conference | | 09:00 | EUR | ECB Economic Bulletin | | 09:00 | EUR | Eurozone Current Account (EUR) Jan | 39.4B | 32.3B | 31.9B | | 09:00 | EUR | Eurozone Manufacturing PMI Mar P | 45.7 | 47 | 46.5 | | 09:00 | EUR | Eurozone Services PMI Mar P | 51.1 | 50.5 | 50.2 | | 09:30 | GBP | Manufacturing PMI Mar P | 49.9 | 47.8 | 47.5 | | 09:30 | GBP | Services PMI Mar P | 53.4 | 53.8 | 53.8 | | 12:00 | GBP | BoE Interest Rate Decision | 5.25% | 5.25% | 5.25% | | 12:00 | GBP | MPC Official Bank Rate Votes | 0--1--8 | 0--1--8 | 2--1--6 | | 12:30 | CAD | New Housing Price Index M/M Feb | 0.10% | 0.10% | -0.10% | | 12:30 | USD | Initial Jobless Claims (Mar 15) | 210K | 210K | 209K | | 12:30 | USD | Philadelphia Fed Manufacturing Survey Mar | 3.2 | 0.2 | 5.2 | | 12:30 | USD | Current Account (USD) Q4 | -195B | -209B | -200B | | 13:45 | USD | Manufacturing PMI Mar P | 51.9 | 52.2 | | 13:45 | USD | Services PMI Mar P | 52 | 52.3 | | 14:00 | USD | Existing Home Sales Feb | 3.94M | 4.00M | | 14:30 | USD | EIA Natural Gas Storage Change (Mar 15) | 5B | -9B |
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