Swiss Franc Bolstered as US Manufacturing Data Misses Estimates

The Swiss Franc (CHF) got bolstered after US economic data, namely the S&P Global and ISM Manufacturing PMIs, came worse than estimated. The S&P Global Manufacturing PMI for March was 49.2, below 49.3 estimates. Later, the Institute for Supply Management (ISM) revealed its Manufacturing PMI, which plunged to 46.3, below the 47.5 foresaw and below February’s data.

Consequently, US Treasury bond yields and the US Dollar (USD) plunged. The USD/CHF extended its losses past the 0.9150 area, hitting a low of 0.9115.

The US Dollar Index (DXY), which tracks the performance of six currencies vs. the US Dollar, drops 0.39%, down to 102.196. the US 2 and 10-year Treasury bond yields are dropping two and four basis points each, at 4.005% and 3.430%, respectively.

Inflation in Switzerland came softer thane expected, with headline data at 2.9% YoY vs. 3.2% estimates. Core inflation rose by 2.2% YoY, below the 2.5% foreseen in February. In March, the Swiss National Bank (SNB) lifted rates by 50 bps to 1.50%, and its Governor, Thomas Jordan, said, “ It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term.”