USD/CHF recovers some lost ground above 0.8740 area ahead of the Swiss Unemployment data

USD/CHF gains traction around 0.8742, up 0.19% for the day.
The July employment and wage inflation report on Friday showed mixed results.
President Joe Biden is likely to announce an executive order restricting US investments in China.
Market players will focus on the Swiss Employment Rate and the US CPI for July.

Lallalit Srijandorn FXStreet

The USD/CHF pair recovers some lost ground and surges above the 0.8740 mark during the early Asian session on Monday. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, bounces off the 101.75 mark and currently trades near 102.05.

The US Dollar faced some selling pressure following the release of the July employment and wage inflation report on Friday. That said, the US Nonfarm Payrolls in the US rose by 187,000 in July, the US Bureau of Labor Statistics (BLS) reported on Friday. This figure was weaker than the market's expectation of 200,000. The June figures were revised lower to 185,000, the lowest reading since December 2020.

Furthermore, the unemployment rate fell to 3.5% from 3.6%, while annual wage inflation, as measured by changes in Average Hourly Earnings, came in at 4.4%, higher than the market estimation of 4.2%. The Labour Force Participation remained unchanged at 62.6%, while the U6 Unemployment Rate declined to 6.7%.

The mixed readings did not change economists’ anticipation about the Federal Reserve's stance. However, it would depend on the trajectory of inflation. According to the CME FedWatch tool, the probability of a 25 basis point (bps) hike in September remains steady, but the odds of a hike in November have increased slightly to approximately 30%.

On the other hand, investors will keep an eye on the US-China relationship. The US President Joe Biden is expected to issue an executive order to restrict US investments in China in the high-tech sector, artificial intelligence, semiconductors, and quantum computing this week, according to Reuters. The exacerbated tensions between the world’s two largest economies might benefit the safe-haven Swiss Franc and act as a headwind for the USD/CHF pair.

Moving on, market players will focus on the Swiss Employment Rate due later on Monday. The figure is expected to remain unchanged at 2.0%. Later this week, the US Consumer Price Index (CPI) for July will be due on Thursday. Market expectations anticipate a 0.2% monthly increase. Also, the US Produce Price Index (PPI) will be released on Friday. Market participants will keep an eye on the data and find trading opportunities around the USD/CHF pair.

NZD/USD

Overview
Today last price	0.6099
Today Daily Change	0.0015
Today Daily Change %	0.25
Today daily open	0.6084

Trends
Daily SMA20	0.6215
Daily SMA50	0.6165
Daily SMA100	0.6193
Daily SMA200	0.6228

Levels
Previous Daily High	0.6133
Previous Daily Low	0.607
Previous Weekly High	0.6226
Previous Weekly Low	0.606
Previous Monthly High	0.6413
Previous Monthly Low	0.612
Daily Fibonacci 38.2%	0.6109
Daily Fibonacci 61.8%	0.6094
Daily Pivot Point S1	0.6058
Daily Pivot Point S2	0.6033
Daily Pivot Point S3	0.5995
Daily Pivot Point R1	0.6122
Daily Pivot Point R2	0.6159
Daily Pivot Point R3	0.6185

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold holds above $4,000/three-month low as Fed hike bets and firm USD cap upside

Gold struggles to capitalize on its modest recovery from levels below the $4,000 psychological mark, or a three-month low set earlier this Friday, and retains a bearish tone through the first half of the European session. Federal Reserve officials recently signaled there is no urgency to raise interest rates. Traders, however, are still pricing in around an 80% chance that the US central bank will raise borrowing costs again at its December policy meeting.

Bitcoin, Ethereum, and Ripple rebound as major support levels cap recent sell-off

Bitcoin, Ethereum and Ripple rebound modestly on Friday after correcting and testing their key support zone the previous day. BTC holds the 50-day EMA, ETH finds support around the 100-day EMA, while XRP holds the horizontal floor near $1.300. The price action of these top three cryptocurrencies suggests a recovery if this critical support zone holds; a decisive close below these levels suggests a deeper correction.

US S&P Global PMI expected to show moderating business activity in October

The United States S&P Global preliminary Purchasing Managers Indices for October will be released on Friday, providing fresh insights into the health of the world's largest economy ahead of next week's Federal Reserve monetary policy meeting. The report includes the Manufacturing PMI, Services PMI and Composite PMI, which measure business activity across the private sector.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.