Morning Note: SNB Rate Cut Expected, BoE Decision & Accenture Earnings in Focus

SNB Expected to Cut Rate by 25bps

The Swiss National Bank (SNB) is scheduled to announce its policy rate on March 20 at 08:30 GMT, with most economists anticipating a 25-basis point (bps) cut to 0.25. Following the SNB’s unexpected 50 bps rate cut in December 2024, inflation has surprisingly continued to decline, approaching the lower bound of the central bank’s 0-2% target range and reaching a nearly four-year low of 0.3% in February. Therefore, this downward trend leaves room for an additional rate cut. Given the current economic conditions, another reduction might support the nascent recovery in growth momentum and help anchor medium-term inflation closer to 1%.

(USD/CHF Daily Chart, Source: Trading View)

From a technical analysis perspective, the USD/CHF currency pair has been in a bullish trend since the beginning of October 2024, as indicated by the higher highs and higher lows. However, at the beginning of February 2025, a significant double-top candlestick pattern formed, leading to increased bearish pressure that started pushing the rate downward, as indicated by the lower highs and lower lows formed.

Recently, the pair found support and rebounded with minimal bullish momentum from the 0.8760 – 0.8780 support zone. However, bearish momentum has rejected the upward move, driving the rate back down to retest the same support zone once again. If it breaks below this support zone with strong bearish momentum, it may potentially continue to decline and retest the order block in the 0.8610 – 0.8630 range.

BoE Likely to Keep Rates Steady

The Bank of England (BoE) is set to announce its policy decision on March 20 at 12:00 GMT, and it is widely expected to maintain interest rates unchanged as it assesses the economic impact of U.S. President Donald Trump’s trade tariffs. With UK inflation remaining above the 2% target, the BoE has eased monetary policy less aggressively than the European Central Bank (ECB) and the U.S. Federal Reserve since last summer. However, the BoE has emphasised a cautious and gradual approach to further rate cuts given the prevailing economic uncertainties.

(GBP/USD Daily Chart, Source: Trading View)

From a technical analysis perspective, the GBP/USD currency pair has been transitioning from a bearish to a bullish trend since mid-January 2025, as evidenced by higher highs and higher lows within an ascending channel. Recently, bullish momentum has sustained its upward movement, potentially leading to a retest of the resistance zone at 1.3040 – 1.3070. If the pair breaks above this resistance zone, it could have the potential for further upward movement.

Will Accenture’s Earnings Report Deliver a Surprise?

Accenture is set to release its fiscal Q2 2025 earnings report on March 20 at 12:00 GMT. Analysts estimate earnings per share (EPS) at $2.84, representing a 2.5% increase from the same period last year. Meanwhile, its revenue is projected to reach $16.6 billion, reflecting 4.9% year-over-year growth.

Additionally, the Generative AI (GenAI) market is expected to expand at a compound annual growth rate (CAGR) of 37.6% from 2025 to 2030. As a leader in leveraging GenAI, Accenture is well-positioned to benefit from this growth. In fiscal 2024, the company secured $3 billion in GenAI-related bookings, with an additional $1.2 billion recorded in Q1 of fiscal 2025. This trend suggests that Accenture’s ability to capitalise on the expanding GenAI market will drive further improvements in its future bookings.

(Accenture Share Price Daily Chart, Source: Trading View)

From a technical analysis perspective, the recent price action has been moving in a strong bearish trend, as indicated by the consecutive large and solid bearish candles driving the price downward. However, the price is approaching the swap zone of 310 – 313. If it finds support here, it may rebound and surge upwards. Conversely, if the price breaks below this swap zone, it may potentially continue to decline, retesting the support zone at 283 – 287.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.