Federal Reserve's Cautious Stance Strengthens Dollar; Swiss National Bank Cuts Rates; Bank of England Holds Amidst Inflation Concerns

The US dollar strengthened following the Federal Reserve's indication of no immediate rush to cut rates due to tariff uncertainties. The Fed projects two quarter-point interest rate cuts later this year, maintaining the same median forecast as three months prior, despite expectations of slower economic growth and higher inflation. Fed Chair Jerome Powell emphasized the need for greater clarity on the economy's performance before making any moves. In Europe, the Swiss National Bank (SNB) cut its policy rate to 0.25%, marking its fifth successive cut, and expressed readiness to intervene in the FX market if necessary. Conversely, the Bank of England (BoE) is expected to maintain rates amidst persistent inflation above its 2% target. Recent UK labor market data showed little change in pay growth, reinforcing the likelihood of a hold on the bank rate. Elsewhere, the Riksbank held rates steady, reinforcing neutral guidance. The Turkish lira stabilized after a sharp decline, while the yen saw slight gains following the Bank of Japan's decision to maintain rates and caution about global economic uncertainties.