- USD/CHF is struggling to cross 0.9280 as investors await US Services PMI.
- The outperformance of DXY is failing to push the major higher amid a firmer Swiss franc.
- Swiss Unemployment Rate and FOMC minutes are major events that investors will keep on the radar.
The USD/CHF pair is facing barricades around 0.9280 despite the strong gains in the US dollar index (DXY). The DXY is scaling higher after the upbeat US Unemployment Rate. The US Bureau of Labor Statistics reported the Unemployment Rate at 3.6% lower than the estimates of 3.7% and the prior figure of 3.8%. The US administration is continuously recording the Jobless rate below 4%, which indicates achievement of full employment and course higher odds of a fat interest rate hike by the Federal Reserve (Fed).
The Fed is likely to approach a tight-aggressive monetary policy to corner the soaring inflation. An interest rate hike by 50 basis points (bps) is more likely on cards as the dual mandate of the Fed: inflation and Jobless rate are indicating exhaustion. Meanwhile, CME Group's FedWatch tool is showing 71% odds of a half-point rate increase.
On the Swiss franc front, the currency is performing decently against the greenback on positive market sentiment. The risk-on impulse is favoring the risk-sensitive currencies amid progress in the Russia-Ukraine peace talks. Apart from that, the Swiss franc is firmer ahead of the Swiss Unemployment Rate. The Swiss State Secretariat of Economic Affairs is likely to report the monthly jobless rate at 2.2%, similar to the previous figure.
Going forward, the minutes from the Federal Open Market Committee (FOMC) will be the major event, which is due on Wednesday. But before that, investors will focus on Tuesday’s US Services PMI, which may land at 58 against the previous print of 56.5.
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 bears flirt with 0.6900 amid recession woes, Aussie Retail Sales, Fed’s Powell eyed
AUD/USD remains depressed around 0.6900, after a two-day downtrend, as traders await key Aussie data during Wednesday’s Asian session. That said, the risk barometer pair refreshed its weekly high before closing in the red for the second consecutive day on Tuesday.
EUR/USD bulls step in and the price stablises as US dollar bid stalls
EUR/USD is trading around 1.0520 in early Asia following a choppy Tuesday on the back of a firmer US dollar, China relaxing its rigid COVID protocols coupled with disappointing US consumer sentiment data and central bank rhetoric.
Gold eyes further downside towards $1,800, Fed Chair Powell in focus
Gold Price remains on the back foot around $1,820, despite the recent bounce off intraday low. In doing so, the yellow metal prints a three-day downtrend as traders await the week’s key data/events amid a sluggish Asian session on Wednesday.
Compound price: You won't believe how high COMP can rally
Compound's COMP price could be a very favorable digital asset in the coming weeks. This article is meant to inform investors of data excluded on Tradingview's Binance, Coinbase and Kucoin exchanges for reasons that have yet to be explained.
FXStreet Premium users exceed expectations
_XtraSmall.png)
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!