The key highlights on the agenda today are central bank decisions featuring the SNB and BOE. They will round off the central bank bonanza in June, but the decisions might end up being non-events for the most part. I'll get to that in a bit. But for now, FX is keeping rather muted as things are little changed since the US holiday yesterday.
The ranges among dollar pairs leave a lot to be desired. So, we might just get some extensions to that in European morning trade.
But if anything else, the franc and sterling will be two main currencies to watch amid their respective central bank decisions.
The SNB might still have the propensity to surprise by keeping rates on hold. However, the BOE is likely to be a more straightforward one. I shared some thoughts earlier this week here.
In the case of the franc, it is starting to build further momentum in June trading. So, that will be one to pay attention to as the run higher could end up being exacerbated further should the SNB surprise markets today. Even though analysts and market pricing are siding with a 25 bps rate cut, my take is that the decision is more of a 50-50 rather than outright leaning towards a rate cut today.
