- USD/CHF is expected to extend its downside journey towards 0.9050 amid dovish Fed Harker commentary.
- Fed Harker is confident that there will be no recession in the US economy.
- SNB Jordan is committed to bringing inflation back below 2% as soon as possible as he sees inflation risks higher than deflation.
The USD/CHF pair is in a declining stage in early Asia and is expected to drop further toward the crucial support of 0.9050. The Swiss Franc asset witnessed a steep fall after dovish commentary from Federal Reserve (Fed) policymakers.
S&P500 futures have added some gains in Asia after a bullish Thursday, portraying a risk-appetite theme. Fed policymakers’ dovish commentary infused fresh blood into risk-perceived assets and weighed heavily on the US Dollar Index (DXY).
The US Dollar Index (DXY) is gauging an intermediate support around 103.50 after an intense sell-off move. Philadelphia Federal Reserve Bank President Patrick Harker stated on Thursday that he believes it is time for the central bank to 'hit the stop button' for at least one meeting, reiterating his comments from Wednesday about a potential pause at the next meeting. Harker argued that such a move would be prudent at this time.
Regarding economic outlook, Fed Harker is confident that there will be no recession in the United States economy, however, a significant deterioration in the labor market cannot be ruled out.
Going forward, the release of the US Nonfarm Payrolls report will provide more clarity about the Employment status. Analysts at Danske Bank stated “We expect to see another relatively upbeat US Jobs Report. So far the signals from leading data have pointed towards healthy employment growth, which could be further supported by a renewed uptick in labor force participation. We think NFP grew by a solid 200K.”
On the Swiss Franc front, annual Real Retail Sales (April) contracted significantly by 3.7% while the street was anticipating a contraction of 1.4%, and previous data was contracted by 1.9%. On Wednesday, Swiss National Bank (SNB) Chairman Thomas Jordan cited that they have to bring inflation back below 2% as soon as possible and noted that he sees inflation risks higher than deflation in the future, due to deglobalization.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD looks range bound in the sub-1.1600 area
Following Wednesday's hiccup, EUR/USD resumes its weekly downturn, remaining in the sub-1.1600 range, while the US Dollar (USD) gains momentum across the board on the back of solid retail sales numbers and the weekly labour market report.
GBP/USD remains on the defensive around 1.3400
GBP/USD maintains its bearish tilt unachanged toward the end of Thursday’s session, hovering just above recent multi-week lows around the .3400 neighbourhood. The positive UK labour market statistics offered instant support for the British Pound, but the strong tone in the Greenback kept Cable’s price action subdued.
Gold trades with modest losses near $3,340
Gold remains in auto-pilot around the $3,340 zone per troy ounce as the NA session draws to a close on Thursday. The yellow metal's negative trend stems from the extra improvement in the dollar, rising US yields, and some relief from trade concerns.
Top Crypto Gainers: FLOKI, BONK post double-digit gains, CRV targets $1
Solana-based meme coins Floki and Bonk edged lower by 2% at press time on Thursday, following the 30% gains on Wednesday, ranking as top crypto gainers in the last 24 hours. Curve DAO ranks third with a 21% surge following a triangle setup breakout, targeting the $1 psychological level.
China’s first-half growth remains on track, though activity data signals caution
China's second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.