USD/CHF drops sharply to 0.9000 as US Dollar slumps ahead of US Inflation data. S&P 500 opens on a positive note, indicating demand for risk-perceived assets. The SNB is expected to cut interest rates again as Swiss inflation remains below 2%. The Swiss Franc asset weakens as the market sentiment remains cheerful even though traders pare bets supporting Federal Reserve rate cuts from the June meeting.
Monthly headline and core inflation are both forecasted to have increased at a slower pace of 0.3% from 0.4% in February. In the same period, economists expect the annual headline CPI to accelerate to 3.4% from 3.2%, while the core inflation is anticipated to decelerate to 3.7% from 3.8%. The inflation data is expected to significantly influence market expectations for Fed rate cuts.