The Swiss franc is almost unchanged at the start of the week. In European trade, USD/CHF is trading at 0.9137, up 0.07%.

The US dollar posted strong gains on Friday. USD/CHF fell by 0.45%, its sharpest one-day loss in a month. The US currency received a boost as international investors bought up US Treasuries in month-end rebalancing flows.

Swiss Manufacturing PMI rises

The week started on a positive note, as Swiss Manufacturing PMI accelerated for a six straight month, rising from 66.3 to 69.5 points. A recovery in the global economy has resulted in increased demand for Swiss exports. A reading over the 50-level points to growth, and manufacturing continues to show significant expansion.

Aside from the movement in US Treasuries, positive US data on Friday also boosted the US dollar. The Core PCE Price Index, which is considered the Federal Reserve’s preferred inflation gauge, rose to 0.4% in March, up from 0.1% beforehand. This is another indication of inflationary pressures in the US economy, which continues to fire on all four cylinders. The Fed insists that any spike in inflation is temporary, but if inflation numbers continue to rise in the coming months, the Fed may have to acknowledge that higher inflation levels.

Only last week, Fed Chair Jerome Powell said that it premature to talk about tapering the Fed’s bond purchases. This stance, however, is not uniform amongst Fed members. On Friday, Fed Governor Robert Kaplan, who is not a voting member, stated the Fed needs to be talking about tapering its asset-purchase program. The Fed has insisted that it needs to keep its continue its stimulus, even though recent data points to a rapidly improving economy. If the upcoming nonfarm payroll release breaks the 1-million mark, the Fed may have to reconsider its stance towards a taper.

USD/CHF technical


  • USD/CHF faces resistance at 0.9182 and 0.9233.

  • On the downside, there are support levels at 0.9080 and 0.9029.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD skyrockets to 1.2150 on poor US jobs figures

EUR/USD has hit a new multi-month peak above 1.2150 after the US reported an increase of only 266,000 jobs in April against nearly one million expected. The dollar is under immense pressure. 


GBP/USD soars toward 1.40 after disappointing Nonfarm Payrolls

GBP/USD has been extending its gains after the US Nonfarm Payrolls badly disappointed with an increase of only 266,000 jobs in April, nearing 1.40. Earlier, sterling benefited from the UK Conservative Party's gains in local elections. 


XAU/USD soars above $1,835 after weak Nonfarm Payrolls

Gold has leaped above $1,835 after the US reported an increase of only 266K jobs in April, far below expectations. Lower US yields support the precious metal.

Gold News

Judge reaffirms order SEC must produce documents on Bitcoin, Ether and XRP in Ripple case

Ripple's victory granted the firm access to the SEC's documents on the three leading cryptocurrencies. The regulatory agency recently denied the possession of these documents.

More Dogecoin News

S&P 500 and Nasdaq: Can the Fed pump anymore after weak jobs report

Well, that was an interesting jobs report. Not too many people were forecasting that one. Just in case you missed it NFP were forecast to come in around the 1 million jobs gained but instead the US only added 266k.

Read more