- USD/CHF rose to 0.9030, reaching late May's highs.
- Fresh ISM PMI data showed contraction in the US manufacturing sector activity for June.
- The market odds for a September interest-rate cut by both the Fed and Swiss SNB have increased in the last session.
On Monday, the USD/CHF pair rose significantly, driven by market anticipation of the Federal Open Market Committee (FOMC) minutes release and other key labor market figures from the US due later in the week. The major mover in the session was the ISM Manufacturing PMI from the US, which despite showing a continued contraction in the country's manufacturing sector the Greenback held its ground. US Treasury yields remain high and provide a cushion to the USD.
The spotlight of Monday was the slightly disappointing ISM Manufacturing PMI from the US for June. The PMI edged lower to 48.5 from 48.7 in April. The Employment Index of the PMI fell to 49.3 from 51.1 in May, while the New Orders Index improved to 49.3 from 45.4. The Prices Paid Index, the inflation component, dropped to 52.1 from 57 in the preceding period. As a result, the markets are betting on a 70% probability of a September interest rate cut by the Federal Reserve (Fed) but the bank’s officials aren’t entirely embracing the rate cuts.
In addition to the FOMC minutes, the US labor market figures are a highlight for this week, particularly Friday's June jobs data. Bloomberg consensus anticipates 190k compared to 272k in May. The unemployment rate is not expected to change from 4.0% despite a possible increase in the participation rate. The average hourly earnings are forecast to rise by 0.3% MoM, potentially pushing the YoY rate down to 3.9%. Markets will also pay attention to the ADP and JOLTs figures to be released on Tuesday and Wednesday.
On the other hand, The Swiss June Consumer Price Index (CPI), due to be reported on Thursday, is projected to remain stable at 1.4% YoY for the third consecutive month.
USD/CHF technical analysis
Regarding the technical analysis, the USD/CHF pair's outlook brightens. It has jumped to its highest level since late May, which along with a strong position above the 20, 100, and 200-day Simple Moving Average (SMA), lends a significantly positive outlook for the future. In addition, the pair tallied seven winning days out of the last eight which calls for a positive outlook.
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 accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
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.