- In Friday's session, the USD/CHF recovered surging above the 0.8965 mark.
- Strong Nonfarm Payroll data from the US propelled the USD across the board.
- US Treasury yields increased while the odds of a cut in September by the Fed slightly declined.
The USD/CHF pair is seeing a boost after updated Nonfarm Payroll (NFP) figures from the US were released on Friday, surpassing market expectations. As market bets on the Federal Reserve may turn more hawkish, the divergences with the Swiss National Bank (SNB) might favor the USD.
The newly reported NFP for May expanded to 272K up from 165K (April's revised reading), blowing market estimations of 185K. Strong data such as this has led to a decrease in the odds of a Fed rate cut happening in September. The Unemployment Rate in the US also rose to 4% from the previous 3.9%, with a small decline in the Labor Force Participation Rate, ticking down to 62.5% from the former 62.7%. Concurrently, the Average Hourly Earnings experienced a growth of 4.1% YoY from the revised 4% in April indicating a rise in wage inflation.
Following the release of the data, US Treasury yields spiked with the 2,5 and 10-year rates soaring to 4.80%, 4.44%, and 4.41% making the USD gain interest.
On the other hand, the SNB embarked on an easing cycle in its March meeting, reducing rates by 25 bps to reach 1.5%. As of now, the market predicts 55% odds for another rate cut happening in the upcoming meeting scheduled for June 20.
USD/CHF technical analysis
Technically speaking, the pair has recuperated to a more favorable stance, pushing indicators out of the oversold regions. The Relative Strength Index (RSI) now hovers near 50, signaling a more balanced market, and the Moving Average Convergence Divergence (MACD) is reporting smaller red bars. There's a clear sign of the pair regaining positions above the reformed 100 and 200-day SMA barriers, bolstering the short-term bullish outlook. The 200-day SMA also adds additional reinforcement to defend against losses.
USD/CHF daily chart
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 remains offered in the low-1.0900s
The generalised selling pressure continues to weigh on the risk complex, pushing EUR/USD back toward the 1.0900 support level amid a growing risk-off mood, as traders assess President Trump’s reciprocal tariffs and their impact on economic activity.
GBP/USD retreats further and breaks below 1.2800
The US Dollar is picking up extra pace and flirting with daily highs, sending GBP/USD to multi-week lows near 1.2770 in a context where safe-haven demand continues to dictate sentiment amid the chaos of US tariffs.
Gold recedes to four-week lows near $2,950
The persistent selling pressure is now dragging Gold prices to the area of fresh multi-week troughs near the $2,950 mark per troy ounce, always amid the continuation of the recovery in the US Dollar, highr US yields across the curve and unabated tariff tensions.
US stock market suddenly reverses higher after rumor of 90-day tariff pause before sinking again Premium
NASDAQ sinks 4% before shooting higher on tariff pause rumor. CNBC says White House unaware of tariff pause rumor. S&P 500 sinks to January 2024 level. Bank of America cuts its year-end target for S&P 500 by 16%.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
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.