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SNB to Raise Rates, But Will It Be Enough to Lift the Franc?

The Swiss National Bank (SNB) is widely expected to raise interest rates at 07:30 GMT Thursday, although markets are divided about the size of the move. With inflation grinding lower, the risks seem tilted towards a smaller rate increase that could briefly hurt the Swiss franc, although its overall path will also depend on global risk appetite and FX interventions.  

Dollar and Yen Licking Wounds; BoE and SNB Hikes Highlight the Week

Dollar and Japanese Yen saw a modest bounce back in today's Asian session, making up for some of their steep losses from last week. However, the buying momentum for both currencies remains relatively weak. Due to a light economic calendar today, coupled with public holiday in the US, trading could be relatively quiet. But, the rest of the week is likely to bring considerable volatility, with BoE and SNB rate decisions, Fed Chair Jerome Powell's testimony, and a barrage of crucial economic data.

Week Ahead - A huge week for BoE, SNB to keep hiking, CBRT a wildcard

Week Ahead – A Huge Week for BoE, SNB to Keep Hiking, CBRT a Wildcard

It will be a quiet Monday as Wall Street observes Juneteenth. A week filled with economic releases will probably see the most attention go towards Fed speak.  After the Fed’s hawkish skip, Wall Street wants to know if they can become convinced that we could see two more rate hikes. On Tuesday, Fed’s Bullard speaks at Barcelona School of Economics and Williams attends a NY Fed event.  On Wednesday, Chair Powell appears before the House Financial Services Panel, while Goolsbee speaks at the Global Food Forum.  On Thursday, Powell appears before the Senate Banking Panel. Mester and Barkin also make appearances on Thursday. Bullard and Mester also speak on Friday.  

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