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August 13th - According to foreign media reports, 83% of economists expect the European Central Bank (ECB) to raise its deposit facility rate by 25 basis points to 2.50% in September; 80% expect the rate to remain at 2.50% until the end of the year; and 63% expect it to remain at least 2.50% until the third quarter of 2027. Of the 69 economists surveyed, 57 (approximately 83%) expect a rate hike next month, a higher percentage than the 72% before the July meeting and 65% in June. This indicates that following the June rate hike, market consensus on another ECB rate hike in September is strengthening. Nomura Securities points out: "The longer oil prices remain at current levels and the higher they rise, the greater the risk of a second round of effects. The ECB cannot act before seeing these effects, but they can act in advance—which is exactly what the ECB has been doing. The risk is that if the ECB only raises rates once, it will look like a fine-tuning operation, which is not known to be the way monetary policy should be done. If they raise rates once, they will likely raise them again. Given that a rate hike in June is an obvious option for the ECB, we believe the probability of another rate hike is high."Iranian intelligence: Two “terrorist extremist group” action teams were destroyed in southeastern Iran, four terrorists were arrested, and two of them were killed.August 13th - Even after sources indicated that Prime Minister Sanae Takaichis government supported an interest rate hike, the yen remained near a key level against the dollar. The yen held steady on Thursday, trading around 159.36 against the dollar. Historically, when the exchange rate approaches 160, it usually signifies potential government intervention to support the yen. According to sources, the next interest rate adjustment is likely in September or October. They added that the central banks concerns about the weak yen pushing up prices, coupled with the governments desire to enhance the effects of recent US-Japan currency interventions, have led to a consensus on the necessity of an imminent rate hike. Investors said the news had little impact on the yen, as the market had already priced in a rate hike from the Bank of Japan. The yen has continued to weaken recently due to Japans large interest rate differential with the US and its heavy debt burden.August 13th - According to Lighthouse Pro, as of August 13th, the total box office for August 2026 has exceeded 2.5 billion yuan. "Spider-Man: New Day," "The Eight Immortals," "Welcome to the Dragon Restaurant," "Kung Fu Womens Soccer," and "The Annual Meeting Cant Stop! 2" are currently ranked in the top five at the August box office.A Reuters poll found that 55 out of 69 economists believe the European Central Banks deposit rate will reach 2.50% by the end of 2026. (In a July survey, 49 out of 74 economists held this view.)

USD/CHF Consolidates Around 0.9040 As Attention Shifts To US Inflation

Daniel Rogers

Apr 10, 2023 14:27

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The USD/CHF pair continues to trade lacklusterly above the crucial support level of 0.9036 in the early Tokyo session. Investors are shifting their focus to Wednesday's release of United States Consumer Price Index (CPI) data, making it difficult for the Swiss Franc to gain traction.

 

As tensions between China and Taiwan escalate, S&P500 futures have pared some of their gains. The market's anxiety has been alleviated by the increasing intensity of Chinese military exercises around Taiwan Island. In addition, concerns of a recession are likely to cause volatility in US equities.

 

Jamie Dimon, CEO of JPMorgan Chase, stated in an interview with CNN that the recent banking turmoil caused by the dissolution of Silicon Valley Bank (SVB) and Signature Bank has increased the likelihood of a recession in the United States.  Despite the robustness and security of the banking system, the recent turmoil in the financial system is "another weight on the scale" toward recession, he added.

 

The US Dollar Index (DXY) is protecting the 102.00 support level ahead of US Consumer Price Index (CPI) data. According to the consensus, headline inflation will fall from 6.0% to 5.2%. In addition, the headline monthly CPI would decelerate to 0.3% from 0.4% previously reported. As a consequence of oil prices remaining low in March, inflationary pressures are anticipated to become evident.

 

In contrast, the core CPI, which excludes crude and food prices, is anticipated to increase to 5.6% from 5.5%. The tenacity of inflationary pressures is maintained by the resiliency of demand for essential products, as a result of a higher labor cost index. A similar event could compel the Federal Reserve (Fed) to raise rates again at its May monetary policy meeting.

 

Regarding the Swiss Franc, Swiss markets are suspended on Easter Monday. This week, the Producer Price Index (PPI) data will have an impact on the Swiss Franc.