USD/CHF surges beyond 0.9600 after US NFP data
- USD/CHF gained nearly 100 pips during the American session.
- Nonfarm Payrolls in the US unexpectedly rose by more than 2 million in June.
- Wall Street's main indexes register strong gains on risk rally.
The USD/CHF pair spent the first half of the day moving sideways near 0.9550 but gained traction during the American session and climbed to a daily high of 0.9651. Although the pair erased a small portion of its gains, it's still up 0.75% on the day at 0.9625.
NFP report boosts USD and sentiment
The highly-anticipated labor market report published by the US Bureau of Labor Statistics on Friday revealed that Nonfarm Payrolls (NFP) in May increased by 2.5 million in May. This reading came in much better than the market expectation for a decline of 8 million and helped the greenback gather strength against its rivals. Moreover, the Unemployment Rate dropped to 13.3% from 14.7%.
With the initial reaction to the jobs report, the US Dollar Index (DXY) erased its daily losses and turned positive on the day near 97.00.
Meanwhile, Wall Street's main indexes opened the day sharply higher on Friday and made it difficult for the CHF to find demand as a safe-haven. At the moment, the Dow Jones Industrial Average is up 3.4% on the day and the Nasdaq Composite and the S&P 500 are rising 1.65% and 2.7%, respectively.
However, the upbeat market mood also seems to be weighing on the USD and allowing the pair to retreat from highs. Nevertheless, the DXY is clinging to small daily gains near 96.80 and looks to snap its eight-day losing streak.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
