What are the main events for today?

We have two central bank decisions today (SNB and BoE) and the US Jobless Claims figures. The SNB might surprise with a hold, while the BoE will likely keep a wait-and-see stance.

07:30 GMT - SNB Policy Announcement

The SNB is expected to cut by 25 bps bringing the policy rate to 0.25%. The Swiss CPI released recently beat expectations with the Core measure remaining firm around 1.00% Y/Y. Moreover, the German fiscal stimulus is expected to boost the European and Swiss economies. The SNB might be less inclined to cut rates further now although the market prices a 65% chance of one last cut at today's decision (there's a good chance of a surprise hold).

12:00 GMT/08:00 ET - BoE Policy Announcement

The BoE is expected to keep the Bank Rate unchanged at 4.50% with a 7-2 vote split. The central bank remains in an uncomfortable position amid high wage growth and sticky inflation. The last UK CPI beat expectations across the board with the services inflation measure, which is what the BoE is more concerned about, jumping back to the 5.0% handle from 4.4% prior. Therefore, it’s unlikely that they will signal much other than keeping rates steady until they get more confidence on the inflation front.

12:30 GMT/08:30 ET - US Jobless Claims

The US Jobless Claims continue to be one of the most important releases to follow every week as it’s a timelier indicator on the state of the labour market.

Initial Claims remain inside the 200K-260K range created since 2022, while Continuing Claims continue to hover around cycle highs.

This week Initial Claims are expected at 224K vs. 220K prior, while Continuing Claims are seen at 1887K vs. 1870K prior.