The dollar index climbed to its highest since May 2025 as the SNB and BoE left rates unchanged, widening the yield advantage. EUR/USD tested support near 1.0800, GBP/USD slipped below $1.24.
Alpha Score of 64 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
The US dollar extended its rally on Thursday, climbing to the highest level since May 2025. The move came as the Swiss National Bank and the Bank of England both left policy rates unchanged, reinforcing the dollar's yield advantage as markets priced in further Federal Reserve tightening.
The SNB held its policy rate at 0.00%, matching consensus. The central bank added a new line to its statement, saying its "readiness to intervene in forex markets is higher" and included the phrase "if necessary." SNB Chairman Thomas Schlegel declined to explain why the language changed. Traders read the omission as dovish. The Swiss franc weakened after the press conference, giving back earlier gains.
The BoE left the Bank Rate at 3.75%, as expected. The statement repeated that the Monetary Policy Committee "stands ready to act as necessary" to bring inflation back to the 2% target. Before the decision, markets priced in 35 basis points of tightening by year-end, with a 58% chance of a hike in September. Those odds held steady after the announcement.
The UK employment report, released earlier in the session, showed the unemployment rate ticking lower and wage growth accelerating. That firmed expectations for a BoE rate hike later this year. The pound's gains were short-lived. The dollar's momentum overwhelmed the data, pushing GBP/USD back below $1.24.
The dollar's strength was the session's dominant theme. The greenback rose against all major peers. EUR/USD tested support near 1.0800, while GBP/USD slipped below $1.24. The dollar index closed at its highest since May 2025, a level that has historically acted as resistance. Traders cited growing expectations that the Federal Reserve will need to raise rates further to contain inflation, even as other central banks pause or slow their cycles.
For a closer look at the euro's path, see the EUR/USD profile. For sterling's setup, the GBP/USD profile tracks the key levels.
The next major data point is the US jobs report due next week. That print could either reinforce or challenge the hawkish repricing that has driven the dollar to multi-month highs.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.