Swiss Franc Weakens While Dollars Show Strength

By Tomasz Wisniewski|

Published: June 21 2024, 05:44 GMT+0

Swiss Franc Weakens While Dollars Show Strength

Good morning, traders! As we gear up for the last trading day of the week, let’s review what happened on Thursday and what lies ahead today.

Thursday was filled with significant events. The Swiss National Bank unexpectedly cut interest rates from 1.5% to 1.25%, causing the Swiss franc to weaken sharply. Meanwhile, New Zealand’s inflation data came in slightly above expectations at 0.2%. The Bank of England kept its rates steady at 5.25%, as anticipated, adding a steadying influence on the markets.

Today, European indices are opening strong, continuing their positive momentum from earlier sessions. The Nasdaq had a rare bearish correction yesterday, contrasting with the Dow Jones, which posted significant gains. Commodities are enjoying a positive trend, with gold and silver extending their recent gains and oil trading significantly higher after breaking key resistance levels. In the currency market, the Swiss franc remains weak, while the Canadian, American, New Zealand, and Australian dollars show strength.

As we look ahead to today, the economic calendar is busy. The U.K. will release its retail sales figures, expected at 1.6%. Additionally, PMI data from France, Germany, the Eurozone, the U.K., and the U.S. will be published, offering critical insights into the health of the manufacturing and services sectors. Canadian retail sales are also on the docket, projected to rise by 0.7%. These data releases are pivotal and are likely to set the tone for market movements heading into the weekend.