FX Daily Snapshot

The USD continues to benefit from a hawkish Fed shift, yet MUFG expects limited further upside as global yields face downward pressure. Meanwhile, the SNB maintained its policy rate at 0% while noting potential for currency intervention.

Key Takeaways

• 1.The US dollar has advanced following a hawkish shift in the Fed's dot plot, though the scope for further appreciation remains limited.
• 2.The SNB left rates at 0% and communicated no urgency regarding inflation risks, while highlighting a willingness to intervene if necessary.
• 3.Energy disinflation remains a key theme, with crude oil prices down significantly and expectations of a 'significant overhang' in global crude balances in 2027.

Table of Contents

• Scope of US dollar appreciation has limits
• USD: MoU doubts sees oil rebound
• CHF REER REMAINS ELEVATED WITH SNB YESTERDAY REPEATING ITS WILLINGNESS TO INTERVENE
• CHF: Limited scope for franc depreciation
• KEY RELEASES AND EVENTS
• CERTIFICATION
• LEGAL ENTITIES AND BRANCHES
• GENERAL DISCLAIMERS
• COUNTRY AND REGION SPECIFIC DISCLAIMERS

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