MNI: SPAIN DEC HICP 0.4% M/M, 2.8% Y/Y

MNI BRIEF: China Sees Favourable Conditions For 2025 Trade

MNI: FRANCE DEC HICP 0.2% M/M, 1.8% Y/Y

MNI: PBOC Net Injects CNY958.4 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1883 Weds; -2.29% Y/Y

MNI NBP WATCH: Rate Hold Seen After Governor's Hawkish Tilt

MNI: UK DEC CPI +0.3% M/M, +2.5% Y/Y

MNI: UK PPI DEC INPUT -1.5% Y/Y, PPI OUTPUT 0.1% Y/Y

MNI: SWEDEN FINAL DEC CPIF +1.5% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: CHF Lags Following Bold SNB Easing, GBP Also Underperforms

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Following the bold 50bp rate cut from the SNB, the Swiss Franc is the worst performer in G10 on Thursday. Despite the initial EURCHF spike to 0.9344, momentum did then stall and a late mention that the likelihood of negative rates has become smaller prompted a reversal back to 0.9305 ahead of the ECB. However, ERUCHF (+0.61%) has been steadily grinding higher since and looks set to close near session highs.
  • USDCHF rose to a fresh two-week high of 0.8902, and the renewed strength sees us narrow the gap to the post-election highs of 0.8957. The 50-day EMA has supported the pair well here, with the dip following non-farm payrolls providing a good entry point to the broader trend.
  • The Euro is currently just above pre-ECB announcement levels ~1.0495, with a tight 55pip range containing the two-way swings post press conference. Support at 1.0461, the Dec 2 low, continues to hold for now and we pointed out that notable option expiries up to Monday between 1.0500-1.0600 might limit the single currency downside.
  • Relative weakness for sterling has prompted EURGBP to rise 0.41% on the session, briefly reaching 0.8273 post ECB. Attention remains on key support at 0.8203, the Mar 7 ‘22 low and the lowest point of a multi-year range.
  • AUDUSD had a volatile session, initially rallying well on the solid jobs report overnight, where the unemployment rate fell back sub 4.0%, well below forecasts. However, mixed signals this week from the China developments and the RBA dovish pivot keeps the broader dovish trend dominant. Spot has edged back below 0.6400 and is just 40 pips above Wednesday’s fresh one-year low of 0.6337.
271 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Following the bold 50bp rate cut from the SNB, the Swiss Franc is the worst performer in G10 on Thursday. Despite the initial EURCHF spike to 0.9344, momentum did then stall and a late mention that the likelihood of negative rates has become smaller prompted a reversal back to 0.9305 ahead of the ECB. However, ERUCHF (+0.61%) has been steadily grinding higher since and looks set to close near session highs.
  • USDCHF rose to a fresh two-week high of 0.8902, and the renewed strength sees us narrow the gap to the post-election highs of 0.8957. The 50-day EMA has supported the pair well here, with the dip following non-farm payrolls providing a good entry point to the broader trend.
  • The Euro is currently just above pre-ECB announcement levels ~1.0495, with a tight 55pip range containing the two-way swings post press conference. Support at 1.0461, the Dec 2 low, continues to hold for now and we pointed out that notable option expiries up to Monday between 1.0500-1.0600 might limit the single currency downside.
  • Relative weakness for sterling has prompted EURGBP to rise 0.41% on the session, briefly reaching 0.8273 post ECB. Attention remains on key support at 0.8203, the Mar 7 ‘22 low and the lowest point of a multi-year range.
  • AUDUSD had a volatile session, initially rallying well on the solid jobs report overnight, where the unemployment rate fell back sub 4.0%, well below forecasts. However, mixed signals this week from the China developments and the RBA dovish pivot keeps the broader dovish trend dominant. Spot has edged back below 0.6400 and is just 40 pips above Wednesday’s fresh one-year low of 0.6337.