USD/CHF gains ground on the expectation of the Fed prolonging elevated policy rates. Bond markets face selling pressure as a result of the resilience observed in the US economy. Swiss Trade Balance revealed a surplus of 3662M, surpassing expectations of 3500M Market expectations suggest that the Federal Reserve will maintain its monetary policy unchanged during the March meeting scheduled for Wednesday.
The Swiss National Bank forecasts inflation to average 1.9% in 2024. Presently, the inflation rate is notably below this projection at 1.2%. However, there was a notable increase in the Consumer Price Index in February, rising by 0.6% compared to 0.2% previously on a monthly basis. Market participants are eagerly awaiting the Swiss National Bank March policy meeting scheduled for Thursday. According to Reuters, there is a 29% probability of the SNB trimming its 1.75% policy rate at the meeting.