That sees the pair erase losses on the week itself as well, moving back to the opening levels this week. The franc is also pushed lower against the dollar, with USD/CHF itself now up 0.6% as well to 0.8485 on the day. All this comes as market players are eyeing the SNB policy decision tomorrow. For some context:
Traders are pricing in ~53% odds of a 50 bps rate cut tomorrow now, even if the "expectation" is for a 25 bps move. The remaining ~47% odds are favouring the latter currently.
As mentioned yesterday, the SNB wants a weaker franc but traders are beginning to price in the potential for them to surprise tomorrow. They might have to just follow up on that but in moving by 50 bps this week, it leaves less buffer room for them to cushion further blows to the economy moving forward. So, there's that.
