USD/CHF oversteps 0.9580 on souring market mood, focus is on Swiss GDP and US NFP
- USD/CHF is looking to establish above 0.9580 as risk-off impulse rebounds.
- Investors will focus on the release of the US NFP and Swiss GDP.
- A significant improvement is expected in the Swiss GDP numbers by the market participants.
The USD/CHF pair is scaling firmly higher in early Tokyo as a minor rebound in the negative market sentiment is annoying the risk-perceived currencies. The pair has touched an intraday high of 0.9583 in the Asian session after a minor fall in the first trading hour.
A two-week fall in an asset is generally expected to be followed by a minor rebound. The US dollar index (DXY) is following the same rationale and is attracting bids near its monthly lows at 101.43. The odds of a 50 basis point (bps) interest rate hike by the Federal Reserve (Fed) in its June monetary policy are rising each trading session. Rising price pressures accompanied with tight labor market is impacting the households’ paychecks.
This week investors will focus on the release of the US Nonfarm Payrolls (NFP), which are due on Friday. An addition of 310k jobs in the labor market is expected to be reported by the US Bureau of Labor Statistics. Last month, the US NFP figure remained at 428k.
On the Swiss franc front, the market participants are awaiting the Tuesday’s Gross Domestic Product (GDP). The quarterly GDP is expected to improve to 0.4% from the prior print of 0.3%. While the yearly GDP figure may significantly improve to 4.4% vs. the former figure of 3.7%. Expectations seem much more lucrative than the previous figures and good God what will happen if the print outperforms the expectations.
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.
