Swiss Franc futures tumble to worst day since March.
Swiss Franc futures declined sharply against the U.S. dollar, dropping 1.06% to an intraday low of 1.2040 to register their largest single-day percentage decline since March 2. Greenback strength expanded after core CPI increased 0.3% month over month, hitting the threshold Fed Governor Christopher Waller indicated would open discussion for a 50 bps move. The CME FedWatch Tool now fully prices a December policy increase, reflecting an 86.9% probability of a 25 bps hike and a 13.1% chance of a half-point adjustment. Meanwhile, the Swiss National Bank maintains its policy rate at zero with inflation remaining contained, setting up potential further policy divergence between the two central banks.
Swiss Franc futures declined sharply against the U.S. dollar, dropping 1.06% to an intraday low of 1.2040 to register their largest single-day percentage decline since March 2. Greenback strength expanded after core CPI increased 0.3% month over month, hitting the threshold Fed Governor Christopher Waller indicated would open discussion for a 50 bps move. The CME FedWatch Tool now fully prices a December policy increase, reflecting an 86.9% probability of a 25 bps hike and a 13.1% chance of a half-point adjustment.
Meanwhile, the Swiss National Bank maintains its policy rate at zero with inflation remaining contained, setting up potential further policy divergence between the two central banks.