Economic Shifts and Currency Movements: Fed and SNB Drive Market Sentiments

The safe-haven dollar weakened slightly amid increased risk appetite as traders awaited speeches from top Fed officials. The Swiss franc climbed following a rate cut by the Swiss National Bank. A rally in European and Asian stocks was attributed to China's stimulus measures. Eyes are on upcoming Fed statements for future rate cut cues.

On Thursday, the safe-haven dollar weakened marginally as traders exhibited increased risk appetite ahead of key speeches by Federal Reserve policymakers and pivotal economic data releases. This has spurred speculation on the trajectory of future interest rate cuts by the Fed.

Concurrently, the Swiss franc gained momentum, rising after the Swiss National Bank (SNB) announced a 25 basis point rate cut. Prior to this, markets had anticipated a more substantial cut of 50 basis points, following the Federal Reserve's earlier move.

Optimism over China's aggressive stimulus package drove a rally in European and Asian stocks, which continued to gain traction. Investors are keeping a close watch on upcoming remarks from Fed Chair Jerome Powell and other central bank officials, as well as U.S. jobless claims data, to gauge the future direction of monetary policies.

(With inputs from agencies.)