USD/CHF rallies towards 0.9200 on firmer DXY amid the broader risk-aversion theme
|- USD/CHF looks to reclaim 0.9210 on the escalation in the Russia-Ukraine war.
- The DXY has been supported by strong US NFP numbers.
- Swiss Unemployment Rate and US CPI will hog the limelight this week.
The USD/CHF pair has rebounded strongly from 0.9165 amid a broader risk-aversion theme in the market which has underpinned the greenback. The escalation of the Russia-Ukraine war during the weekend has brought a fresh wave of weakness for the risk-sensitive assets.
Moscow ordered the execution of Ukrainian leader Volodymyr Zelensky, however, the latter survived the attacks multiple times. Meanwhile, a high level of Russian air and artillery strikes has continued to hit military and civilian sites in Ukrainian cities,” Reuters quotes the UK Ministry of Defense during early Monday morning in Asia.
The US dollar index (DXY) is hovering around 99.00 on fresh elevation in the odds of a 50-basis point (bps) by the Federal Reserve (Fed) in March’s monetary policy meeting. The odds advocating the Fed’s 0.50% rate hike in March remained firmer, recently 94% per the CME’s FedWatch Tool.
The firmer US Nonfarm Payrolls (NFP) also supported the greenback, which was released on Friday last week. The US NFP was recorded at 678k, surpassing the prior figures and market estimates.
Apart from the Russia-Ukraine headlines, investors will also focus on US Consumer Price Index (CPI) numbers later this week. The disclosure of US inflation numbers will dictate the likely monetary policy action next week. While, the Swiss docket will report the Unemployment Rate on Monday, which will be reported by the State Secretariat of Economic Affairs. The monthly Swiss Unemployment Rate is expected to land at 2.3%, similar to the previous print of January.
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