- USD/CHF drops back to 0.8900 as Swiss Franc strengthens amid fears of SNB’s stealth intervention plans.
- A weak Swiss Franc had made Swiss exports competitive in the global market.
- The US Dollar bounces back as investors turn cautious ahead of the US NFP.
The USD/CHF pair retreats while attempting to extend recovery above the immediate resistance of 0.8950 on Thursday. The Swiss Franc asset drops as the Swiss Franc strengthens amid growing speculation that the Swiss National Bank (SNB) will intervene in the currency market to boost the Swiss Franc’s demand.
SNB policymakers worry that Swiss exports have become competitive due to weak currency, which could prompt upside risks to inflation. On the economic front, the monthly Swiss Unemployment Rate for May came in at 2.3%, matching estimates and the prior release.
Meanwhile, the US Dollar (USD) recovers intraday losses amid uncertainty ahead of the United States (US) Nonfarm Payrolls (NFP) data for May, which will be published on Friday. The US NFP is estimated to report that the hiring process remains robust as fresh payrolls were 185K, higher than the prior release of 175K. The Unemployment Rate is expected to remain steady at 3.9%.
Investors will also focus on the Average Hourly Earnings data, which gauges wage growth, that has remained a major driver to persistent price pressures. Annual Average Hourly Earnings are forecasted to have grown steadily by 3.9%.
Temporarily, the USD/CHF pair finds support near the horizontal support plotted from the February 14 high at 0.8886. Earlier, the Swiss Franc asset weakened after breaking below the horizontal support marked from April 5 near 0.9000, which has become a major resistance for the US Dollar bulls.
The overall trend is bearish as the 20-day and 50-day Exponential Moving Averages (EMAs) appear to deliver a bear cross near 0.9035.
The 14-period Relative Strength Index (RSI) shifts into the bearish range of 20.00-60.00 from the bullish range of 40.00-80.00, indicating a bearish reversal.
More downside would appear if the asset breaks below June 4 low of 0.8900, which will open room for the March 21 low at 0.8840 and the round-level support of 0.8800.
On the flip side, a recovery move above the psychological resistance of 0.9000 will drive the asset towards the June 3 high at 0.9036, followed by the May 28 low at 0.9086.
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
AUD/USD depreciates due to market caution ahead of US NFP
The Australian Dollar remains subdued against the US Dollar for the second consecutive day on Friday. The AUD/USD pair faces modest headwinds as the USD steadies ahead of the upcoming Nonfarm Payrolls report in the North American session.
USD/JPY: Japanese Yen stands firm near a multi-month high against a broadly weaker USD
The Japanese Yen continues to be underpinned by increasing bets for more BoJ rate hikes. Trade tariff jitters and the risk-off mood further seem to underpin demand for the safe-haven JPY. Expectations for further policy easing by the Fed weigh on the USD and the USD/JPY pair.
Gold price remains depressed ahead of US NFP; trade jitters to limit losses
Gold price trades with negative bias for the second straight day, though a combination of factors continues to act as a tailwind ahead of the crucial US NFP report later this Friday. Rising trade tensions continue to weigh on investors' sentiment.
Crypto AI Tokens: Why FET, NEAR and RNDR could outperform BTC after White House Summit
The White House Crypto Summit is scheduled to hold on Friday. Rather than double-down on BTC, sector-wide price trends show that investors are leaning towards Crypto AI altcoins.
Make Europe great again? Germany’s fiscal shift is redefining the European investment playbook
For years, Europe has been synonymous with slow growth, fiscal austerity, and an overreliance on monetary policy to keep its economic engine running. But a major shift is now underway. Germany, long the poster child of fiscal discipline, is cracking open the purse strings, and the ripple effects could be huge.
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.