On June 20, Glonhui | Charu Chanana, the foreign exchange strategy director of Shengbao Bank, stated that due to the political turbulence in Europe (especially in France), the demand for safe-haven pushed the Swiss franc to strengthen recently. The market expects the Swiss central bank to cut interest rates. However, Switzerland's inflation trend, that is, the inflation rate of 1.4% in May 2024, and the Swiss central bank's expectation that the inflation rate from the second to fourth quarters of this year will remain around 1.4%-1.5%, may weaken the prospect of interest rate reduction, especially if the Swiss central bank considers that the recent strength of the Swiss franc is only temporary. If the Swiss central bank does not cut interest rates on Thursday, the Swiss franc may have further potential for appreciation. On the contrary, if the Swiss central bank cuts interest rates, the Swiss franc may fall, especially against currencies such as the Australian dollar.
盛宝银行：短期避险资金流入不太可能推动瑞士央行降息
Sheng Bao Banks: It is unlikely that short-term risk aversion inflows will push the Swiss National Bank to cut interest rates.
The translation is provided by third-party software.
The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.