 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. |
