Swiss Franc trims losses despite higher Oil prices, lower Swiss employment

USD/CHF retreats from 0.7900 highs to 0.7880 but maintains its immediate bullish trend intact.
Swiss employment data revealed a slight decline in jobs in the first three months of 2026.
The focus today is on April's US PCE Price Index figures.

Guillermo Alcala FXStreet

The Swiss Franc (CHF) holds moderate losses against the US Dollar (USD) on Thursday, but it has retraced most of the earlier decline, despite higher Oil prices and uninspiring Swiss employment data. The USD/CHF pair trades right below 0.7880 after being rejected at the 0.7900 area during the Asian session, although it remains positive in the daily chart for the third consecutive day.

The Greenback is drawing support from the escalating tensions in Iran, which have pushed back hopes of a swift end to the war and the reopening of the Strait of Hormuz. The US military has launched the second attack in three days on Iran’s territory, while Tehran reported an attack on a US base in the Gulf region.

Beyond that, the US has issued new sanctions against Iran’s newly founded Persian Gulf Strait Authority, further complicating navigation in the Strait of Hormuz. Vessels sailing through Hormuz are supposed to report to these authorities, but doing so would breach US sanctions.

In Switzerland, data from Swiss Statistics revealed that the Employment Level eased to 5,537 million in the first three months of the year, from 5,544 million in the previous quarter.

In the US, the focus today will be on the Personal Consumption Expenditures (PCE) Price Index data, due later in the day. The Federal Reserve’s (Fed) favourite inflation gauge is expected to confirm that price pressures kept rising in April, providing further reasons for hawks in the committee to support an interest rate hike. The risk is skewed to the upside for the US Dollar.

Economic Indicator

Employment Level (QoQ)

The Employment Level released by the Swiss Statistics shows the total number of employed workers. If the level goes up, it indicates economic expansion within the Swiss labor market, while a declining level suggests a lack of economic expansion. Generally, a high reading is seen as bullish for the Swiss Franc (CHF), while a low reading is seen as bearish.

GBP/USD surrenders some gains, back to 1.3420

GBP/USD holds on to moderate gains above 1.3400 the figure on Friday. Optimism surrounding the UK government’s leadership transition and expectations of further BoE tightening support the British Pound, while easing tensions in the Middle East and fading Fed rate-hike expectations weigh on the US Dollar.

EUR/USD turns positive, targets 1.1450

EUR/USD now picks up pace and advances toward the 1.1440 region on Friday, up modestly for the day. With no major economic data due, lingering uncertainty over the US-Iran conflict keeps investors cautious, limiting the pair's upside.

Gold remains offered, still below $4,100

Gold struggles to extend Thursday’s rebound and navigates below the $4,100 mark per troy ounce on Friday. Uncertainty surrounding the Middle East conflict limits the precious metal’s upside, which is also under pressure amid rising US Treasury yields across the curve.

Week ahead – US CPI and Warsh testimony to take centre stage, BoC eyed too

US inflation report and Warsh testimony to headline the week. Dollar to dominate amid slew of other US data and Mideast tensions. Amid fresh Iran escalation, China GDP to shed light on Q2 impact. Bank of Canada not expected to follow RBNZ with rate hike.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June Federal Open Market Committee meeting landed mid-round-trip, describing a world that had already stopped existing.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.