S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market- USD/CHF appreciated after the Swiss KOF Leading Indicator fell to 96.1 in February.
- SNB may intervene in FX markets to curb excessive CHF strength and maintain price stability.
- The US Dollar may strengthen on rising safe-haven demand amid fears of a potential US ground invasion in Iran.
USD/CHF continues its winning streak for the fifth successive day, trading around a two-month high of 0.8000 during the early European hours on Monday. The pair recovers its daily losses following the release of the Swiss KOF Leading Indicator, which fell to 96.1 in February, from 103.8 (revised from 104.2) in January.
However, the downside of the USD/CHF pair could be restrained as the Swiss Franc (CHF) may face challenges as Swiss National Bank (SNB) Chair Martin Schlegel expressed the SNB’s readiness to intervene in FX markets to curb sharp and excessive currency swings and safeguard price stability. Additionally, SNB board member Petra Tschudin also emphasized the central bank’s increased willingness to step in and limit further strength in the Swiss Franc.
Moreover, the US Dollar (USD) may regain its ground against the major peers amid increased safe-haven demand, which could be attributed to fears of a potential United States (US) ground invasion in Iran.
A Wall Street Journal (WSJ) report suggested last week that the US Pentagon could deploy 10,000 additional troops to Iran. In response, Ebrahim Zolfaqari issued a stark warning on Iranian state TV, stating that “US troops will be good food for sharks of the Persian Gulf.”
Iran-backed Houthi forces in Yemen launched their first strikes on Israel over the weekend, widening the regional conflict and warning that attacks will continue until operations against Iran and its allies cease. The group also threatens Red Sea shipping routes and key Saudi energy infrastructure, heightening risks to global supply.
US economic data releases this week, including various labor market-linked indicators, particularly the Nonfarm Payrolls (NFP), as well as the ISM Purchasing Managers’ Index (PMI), are expected to influence market expectations for the Federal Reserve (Fed) monetary policy outlook.
