Weekly Market Outlook | 24.03.2017

USD in the doldrums.

In its usual annual report released last week, the SNB disclosed its amount of intervention at CHF 67 billion. The figure is massive and it is clear whether the central bank will remain in its usual wait-and-see mode, monitoring carefully any development from the European Central Bank. Political uncertainties linger in the EU which may force ECB policymakers to maintain the monetary policy divergence with the Fed to last a bit longer. Across the globe, the RBNZ maintained its dovish tone on forward guidance despite improvement on the inflation outlook. In the US, Trump’s failure to force repeal the Obamacare bill, together with a dovish Fed have paved the way for further USD weakness, which could benefit EM currencies.