SNB Cuts Interest Rates to Zero
Norges Bank Delivers Surprise 25 BPS Cut
Bank of England Expected to Hold Rates Steady
Powell Warns on Inflation Risks from tarifs
(Updates to European Trading, Updates with SNB and Norges Bank News)
By Ankur Bnerjee and Lucy Raitano
Singapore/London, June 19 (Reuters) – The Dollar Hold Mostly SCEADY on Thursday as the Threat of a Broader Middle East Conflict Loomed Over Markets, Whilele A Flurry of Central Bank Decisions ACLUDING A Surprise cut from Norway Kept Traders Busy.
Rapidly rising geopolitical tensions have boosted the dollar, which has reclaimed its safe-han status in recent days.
Iran and Israel Carried out Further Air Attacks on Thursday, with the Conflict Entering its Seventh Day. Concerns Over Potential Us Involvement Have also Grown, As President Donald Trump Kept The World Guesing About Whomether The United States will join Israel’s Bombardment of Iranian Nuclear Sits.
The federal reserve left rates steady on wedding, and now traders are counting down to a bank of england (boe) meeting due to later in the day, with bets on no change to the base rate.
The swiss franc, meaning, was stronger against the dollar following an expected rate cut from the Swiss National Bank.
But the Surprise Came from the Norges Bank, which delivered a 25 BPS Rate Cut, While Markets Had Expected The Norwegian Central Bank to Hold Rates.
The dollar and the euro both surgged against the Norwegian Crown, and was last up 0.7% and 0.6%
Meanwhile, the euro was 0.1% weaker at $ 1.147. The yen last fetched 145.28 per dollar. The Swiss Franc Strengthed after the SNB Avoided Delivering A Larger Half-Point Cut. By 0930 gmt, the dollar was 0.4% down against the swiss franc fetching 0.8157 francs, while the euro fell 0.3% to 0.9369.
The dollar index, which measures the currency aganst sixs, was flat at 98.9 and was set for about a 0.8% Gain for the week, its strongest weekly performance
Some analysts said investors were looking to cover their short-dollar positions.
“The dollar seems ripe for a short -crossing raly – especially if the us wades into the middle East conflict,” said matt simpson, a Senior analyst at City Index.
Geopolitical Concerns appear to have overshadowed the fomc outcome, according to christopher wong, currency strategist at OCBC. “Risk Aveersion Dominates Sentiments, and That Puts Pressure on Risk-sensitive fx.”
Us markets are closed on Thursday for the federal junete
In a widely expected move, the fed help rates steady, with policymakers signaling they still expect to cut rates by hal hal hal a percenant
Fed Chair Jerome Powell Said Goods Price Inflation will pick up over the course of the summer as trump’s tarifs start to impact consumers.
“Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer,” Powell Told a press conference on wedding on wedding. “We know that trust that’s what businesses say. That’s what the data say from the past.”
The comments from Powell UndersCore The Challenge Facing PolicyMakers as They Navigate UncertainTies from Tarifs and Geopolitical Risks, Lending Markets Anxious MARKETS ANXIOUS AbOT the Path of Us Us Us.
Still, traders are pricing in at least two rates this year thought analysts are unsure of the starting point.
“The market is anticipating two 25 bp rates this year, most probably september and December, but, we think the September fom fom Said in a note.
The Australian Dollar Fell 0.6% at $ 0.647, whose new zealand dollar slipped 0.8% to $ 0.647. (Reporting by ankur bnerjee in singapore editing by jacqueline wong, muralikumar anantharaman and francs kerry)
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