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USD/CHF rebounds after consecutive losses amid US labor data, safe-haven flows

  • USD/CHF rebounds around 0.7740, up 0.15% on Thursday, after several days of decline.
  • US Initial Jobless Claims come in at 212K, below market expectations.
  • Trade tensions and political uncertainty in the US continue to support the Swiss Franc as a safe haven.

USD/CHF trades around 0.7740 on Thursday at the time of writing, up 0.15% on the day, snapping a series of consecutive losses. The pair is supported by a modest rebound in the US Dollar (USD), although the broader backdrop remains characterized by strong demand for safe-haven assets.

The US Dollar stabilizes following the release of weekly labor market data in the United States (US). Initial Jobless Claims stand at 212K for the week ending February 21, compared with a revised 208K in the previous week and below the 215K consensus forecast. Continuing Jobless Claims declined to 1.833 million from 1.864 million previously, pointing to some resilience in the labor market. These figures provide short-term support to the Greenback, without altering monetary policy expectations.

The US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, hovers near 97.70, benefiting from bargain hunting after several days of losses. Investors appear to be looking past the immediate impact of political uncertainty in Washington, particularly after US President Donald Trump announced new 10% tariffs despite a partial ruling by the Supreme Court, limiting some of his trade measures.

However, the Swiss Franc (CHF) continues to draw structural support. The Swiss currency remains in demand amid ongoing trade tensions and concerns over the US fiscal outlook. In addition, expectations of near-term rate cuts by the Swiss National Bank (SNB) are gradually fading. Swiss inflation held at 0.1% in January, near the lower end of the SNB’s 0%-2% target range, reinforcing the view that policymakers are likely to keep rates unchanged in the coming months.

On the US monetary policy front, markets continue to expect the Federal Reserve (Fed) to leave rates unchanged at its upcoming meetings, although bets on easing later in the year persist. This combination of a stabilizing US Dollar and a Swiss Franc supported by its defensive appeal explains the measured price action in USD/CHF, with the pair remaining sensitive to political developments and upcoming macroeconomic releases.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.02%0.15%-0.14%0.08%0.22%0.31%0.18%
EUR-0.02%0.12%-0.15%0.06%0.19%0.29%0.16%
GBP-0.15%-0.12%-0.25%-0.06%0.07%0.16%0.03%
JPY0.14%0.15%0.25%0.21%0.35%0.42%0.31%
CAD-0.08%-0.06%0.06%-0.21%0.14%0.23%0.11%
AUD-0.22%-0.19%-0.07%-0.35%-0.14%0.09%-0.04%
NZD-0.31%-0.29%-0.16%-0.42%-0.23%-0.09%-0.13%
CHF-0.18%-0.16%-0.03%-0.31%-0.11%0.04%0.13%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Ghiles Guezout

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

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