ForexLive European FX news wrap: Swiss franc falls as SNB surprises with rate cut |

SNB:

Headlines:

Markets:

AUD leads, CHF lags on the dayEuropean equities higher; S&P 500 futures up 0.4%US 10-year yields down 3.8 bps to 4.233%Gold up 0.9% to $22,06.43WTI crude down 0.3% to $80.50Bitcoin up 0.1% at $67,170

As the window of opportunity is opening up for central banks to cut rates, the SNB is not waiting around to make its move. The Swiss central bank surprised with a 25 bps rate cut today and the franc fell as a result. We all knew that there was a chance that they could have surprised markets, but traders were caught wrongfooted after having priced in the first move for June instead.

EUR/CHF rose to its highest since July last year from 0.9680 to 0.9780, before easing back to 0.9740 now. Meanwhile, USD/CHF surged up to its highest levels for the year at 0.8975 before retreating to 0.8930 – still up 0.7% on the day.

Besides that, euro area PMI data saw some mixed readings for March. The manufacturing sector remains in recession but a stronger services sector is at least helping to stabilise the economy in general. The euro slipped with EUR/USD falling from 1.0920 to 1.0888 before sticking around 1.0900 with large option expiries also helping out.

As for the dollar itself, there was some post-Fed weakness during Asia trading. But that has dissipated somewhat in European morning trade so far, despite lower Treasury yields. USD/JPY was as low as 150.26 in Asia but has rebounded back to 151.10 now, down just 0.1% on the day.

In the equities space, stocks remain buoyed as European indices are sitting higher for the most part. US futures are also gaining further after the record closes in Wall Street yesterday.

And in the commodities space, gold continues to hold at fresh record highs above $2,200 as it consolidated gains above the figure level during the session.