Should We Keep an Eye on Switzerland's Policy Rate?
17.06.2021
- Switzerland: Policy Rate and Statement Release
- Eurozone Consumer Price Index (Final)
Yesterday, stock prices fell in the U.S. market, leading to a scenario of lower stock prices, a stronger U.S. dollar, and higher interest rates. The U.S. Federal Open Market Committee (FOMC) announced yesterday that it would “begin discussions” on tapering quantitative easing, which was in line with market expectations. Additionally, the GDP growth rate for the October–December quarter of this fiscal year was revised upward from the previous estimate of 6.5% to 7.0%.
The U.S. dollar is surging on the back of rising 10-year Treasury yields. The GBP/USD pair has fallen from 1.413 to 1.397. The AUD/USD pair has also dropped by about 120 pips, from 0.771 to 0.759. The USD/CHF pair has risen from 0.892 to 0.909. The Dollar Index has climbed from 90.5 the previous day to 91.4.We will be watching to see if the US dollar’s strength continues today.
Today, the Swiss trade balance will be released at 3:00 PM Asia time, followed by the SNB policy rate and statement at 4:30 PM Europe time, the final Eurozone CPI at 6:00 PM,at 20:00, the Turkish Central Bank (TCMB) policy rate and statement; at 21:30 during U.S. trading hours, Canadian international securities turnover, the Canadian house price index, U.S. initial jobless claims, and the U.S. Philadelphia Fed Business Outlook Index; at 23:00, the U.S. Leading Economic Index; and at 23:30, U.S. weekly natural gas inventories.We will keep a close eye on price movements while paying attention to today’s release of the Swiss policy rate and statement.
Author: Keisuke Sakurai
