GBP and CHF Extend Decline Following Fed Meeting, Market Focus Shifts to Bank of England and Swiss National Bank Decisions
The British pound and the Swiss franc remain under pressure against the US dollar following the Federal Reserve?s latest meeting, where the regulator left its key interest rate unchanged and signalled no rush to shift the course of monetary policy.
Despite easing inflation, the Fed has maintained a relatively hawkish stance, citing the need for convincing evidence of sustained disinflation. Combined with escalating global geopolitical tensions, this has supported the US dollar and contributed to its strength.
Against this backdrop, market participants have turned their attention to today?s decisions by the Swiss National Bank (SNB) and the Bank of England (BoE). According to the consensus forecast, the SNB may lower its rate by 25 basis points to 0.00%, which could exert downward pressure on the Swiss franc.
Meanwhile, divisions persist within the BoE: while some members of the committee may vote in favour of policy easing, the majority are likely to support holding the rate steady. The outcome of the vote will be a key driver for the short- and medium-term trajectory of the pound.
In the coming sessions, markets are expected to closely monitor signals from the regulators and the performance of the dollar. Should the external backdrop remain unchanged?and if a rate cut in Switzerland is confirmed alongside a more dovish stance from the BoE?pressure on local currencies could intensify.
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