USD/CHF oscillates around 0.9850 ahead of the Swiss Unemployment Rate and US NFP
- USD/CHF is experiencing a minor pullback at around 0.9850, upside remains favored.
- The DXY printed a fresh 19-year high at 103.94 on an extremely aggressive expected hawkish tone by the Fed.
- Investors are awaiting the release of the Swiss jobless rate and US NFP.
The USD/CHF pair is displaying back and forth moves in a narrow range of 0.9840-0.9854 in the Asian session after a minor correction. Earlier, the asset scaled higher strongly as the risk-on impulse faded and the US dollar index (DXY)’s appeal improved swiftly. The major is eyeing to reclaim weekly highs at 0.9890.
The Swiss franc didn’t find any action after the in-line release of the Swiss Consumer Price Index (CPI). The yearly Swiss CPI landed at 2.5%, similar to the expectations but a little higher than the prior print of 2.4%. The lower inflation figure is not compelling for any hawkish tone by Swiss National Bank (SNB)’s Governor Thomas J. Jordan going forward. For further guidance, investors will focus on the monthly Swiss Unemployment Rate, which is seen at 2.2%.
Meanwhile, the US dollar index (DXY) shrugged off the impact of the monetary policy announcement by the Federal Reserve (Fed) and printed a fresh 19-year high at 103.94. Now, investors are awaiting the release of Friday’s US Nonfarm Payrolls (NFP). A preliminary estimate indicates additions of 391k jobs in the labor market against the prior print of 431k. An outperformance from the expectations will bolster the odds of a 75 basis point (bps) rate hike by the Federal Reserve (Fed) in June as an extremely tight labor market will weigh inflationary pressures on the rising labor cost index.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
