Europe Summary and Highlights 24 Sep
CHF remains pressured as SNB increasingly uniquely dovish
NOK and SEK get modest lifts out of hike and hawkish hold
Europe
As wider market takes a breather after Wed’s US Treasury yield and dollar charge, the various central bank meetings providing the main action this morning.
CHF remains pressured out of the SNB meeting, with USD/CHF stretching the year highs. It sees inflation holding 0.7-0.8% out to 2028 based on unchanged interest rates. That dovish signal keeps CHF the increasingly stand out extreme low yielder at a time of broader and faster tightening elsewhere.
Norges Bank opts to exercise the hike it flagged in June, but from here has a central view of rates remaining steady before eventually trimming, although remaining responsive to external price impulses. NOK sees a 20-30 pip lift, but the overall message is already more than priced in to the short-end. Focus bigger picture is more on US-Iran talks and oil.
SNB delivers a hawkish hold, signalling an earlier hike than previously projected. EUR/SEK also some 30 odd ticks off, and rolling back from firm resistance.