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USD/CHF steady around 0.8100 as US data offset by shutdown gloom

  • USD/CHF trades around 0.8100 after retreating from a new three-month high at 0.8124.
  • The ongoing US government shutdown, now in its sixth week, continues to weigh on the US Dollar despite supportive data.
  • The Swiss Franc benefits from stronger safe-haven demand ahead of Thursday’s Swiss unemployment data.

USD/CHF trades around 0.8100 on Wednesday at the time of writing, virtually unchanged on the day after pulling back from a three-month high of 0.8124 hit earlier as data from the United States (US) supports the US Dollar (USD).

According to Automatic Data Processing (ADP), private sector employment rose by 42,000 in October, beating market expectations of 25,000. Similarly, the Institute for Supply Management (ISM) Services Purchasing Managers Index (PMI) surprised to the upside, climbing to 52.4 from 50.0 in September, indicating an acceleration in service-sector activity. These figures, though encouraging, have not fully erased uncertainty over the Federal Reserve’s (Fed) next policy move.

Fed Chair Jerome Powell recently noted that another rate cut in December is “not a foregone conclusion,” suggesting a wait-and-see approach as official data releases remain disrupted. According to the CME FedWatch tool, markets now price a 68% chance of a rate cut in December, down from 94% before Powell’s remarks.

However, the political uncertainty linked to the prolonged US government shutdown continues to cap the Greenback. The funding stalemate, now in its sixth week, is on track to become the longest in US history after the Senate rejected a temporary funding proposal for the fourteenth time. The shutdown has delayed the release of several official statistics and is fueling concerns about its growing impact on the broader economy.

Meanwhile, the strength of the Swiss Franc (CHF) reflects rising global risk aversion, as elevated technology valuations have reignited fears of market corrections. Warnings from major Wall Street bank CEOs about potential equity pullbacks have boosted demand for safe-haven assets.

Investors now turn their attention to Thursday’s release of Swiss unemployment data, which could offer fresh insight into the resilience of the domestic labor market.

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 Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD-0.04%-0.20%0.35%0.20%-0.20%-0.09%-0.07%
EUR0.04%-0.17%0.37%0.24%-0.16%-0.04%-0.02%
GBP0.20%0.17%0.56%0.40%-0.01%0.10%0.13%
JPY-0.35%-0.37%-0.56%-0.15%-0.56%-0.46%-0.42%
CAD-0.20%-0.24%-0.40%0.15%-0.41%-0.31%-0.27%
AUD0.20%0.16%0.01%0.56%0.41%0.11%0.13%
NZD0.09%0.04%-0.10%0.46%0.31%-0.11%0.03%
CHF0.07%0.02%-0.13%0.42%0.27%-0.13%-0.03%

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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