In the opinion of Kit Juckes, chief currency strategist at Société Générale, there will be many central bank meetings this week, but none of them could stop the recovery of the dollar.
A weak Euro will help keep EUR/CHF lower
In the G10, I don’t think central banks will dominate the currency outlook as much as they did six months ago. Growth prospects matter more, and in that sense, perhaps the long end of the yield curve also matters more than rates.
The Euro didn’t get any help from last week’s ECB rate hike and the British Pound may not get much from the Monetary Policy Committee meeting. Gilt sales are likely to be announced, but will rising yields attract buyers or lead to a loss of confidence? GBP/USD has 1.20 in its sights. The CPI (Wednesday) and retail sales (Friday) also deserve attention.
As for the SNB, Riksbank and Norges Bank, if all three increase their rates by 25 basis points, the Swedish krona could be the currency that benefits the least. The internal worries are too great. The Norwegian krone is favored by oil prices, even if global jitters don’t help, and a weak euro will help keep EUR/CHF lower.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
