USD/CHF rebounds from 0.9560 ahead of Swiss GDP, US NFP in focus
|- USD/CHF has attracted some bids near 0.9564, investors should brace for a responsive selling action.
- A preliminary estimate for the annual GDP is 4.4% against the prior print of 3.7%.
- The US NFP may slip to 320k, significantly lower than the 12-month average of 551.6k.
The USD/CHF pair has bounced back from 0.9564 after consolidating in a narrow range of 0.9568-0.9580 in the late New York session. A V-shape downfall after failing to sustain above 1.0000 has pushed the asset lower to 0.9545. On Monday, the asset displayed reluctance while attempting an upside move above 0.9600, which indicates that the party of the Swiss franc bulls is yet not over and more downside would be recorded by the market participants.
The greenback is underperforming against the Swiss franc as investors are expecting an outperformance in the Swiss Gross Domestic Product (GDP) numbers. The quarterly GDP is likely to land at 0.4% vs. 0.3% the former figure. While the preliminary estimate for the yearly figure is 4.4% against the prior print of 3.7%. Later this week, the Swiss Federal Statistical Office may report the Consumer Price Index (CPI) figure at 2.6%, an elevation from the prior print of 2.5%.
Meanwhile, the US dollar front (DXY) has refreshed it's monthly low at 101.30. A minor bounce has been witnessed in the asset, although it looks less confident and will invite a responsive selling action by the market participants ahead. The DXY is going through an intense selling pressure as a lower forecast of the US Nonfarm payrolls (NFP) at 320k is expected to compel the Federal Reserve (Fed) to trim its extreme hawkish tone for June monetary policy.
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