Highlights on the agenda today are central bank decisions involving the Swiss National Bank and the Bank of England. They will wrap up the central bank boom in June, but the decisions may end up being mostly uneventful. I'll get to that in a moment. But for now, the currency market remains fairly calm as things have not changed much since the US holiday yesterday.
The ranges between the dollar pairs leave much to be desired. So, we may get some extensions of that in European morning trade.
But if nothing else, the franc and pound will be key currencies to watch amid their central bank decisions.
The SNB may still have the tendency to surprise by keeping interest rates unchanged. However, the Bank of England is likely to be more clear. I shared some thoughts earlier this week here.
In the case of the franc, it started to build more momentum in June trading. So, this will be something to watch out for as the rally could worsen further if the SNB surprises the markets today. Although analysts and market prices are in favor of a 25 basis point rate cut, my view is that the decision is more of a 50-50 and not an outright bias towards a rate cut today.
