USDCHF retreats from a winning streak toward 0.8900

USDCHF trades lower around 0.8910 after robust employment data from the US.
The reduced jobless claims and the improved labor costs contributed to the strengthening of the US Dollar (USD).
Investors’ confidence grows in a hawkish stance from the Fed due to a consistent stream of positive data.

Akhtar Faruqui FXStreet

USD/CHF trades lower around 0.8910 during the Asian session on Friday, retreating from the winning streak that began on Tuesday. The pair experienced upward support due to the robust jobs data from the United States (US) released on Thursday.

US Initial Jobless Claims as of September 1 reduced to the reading of 216K, falling short of the 234K expected and from the previous reading of 229K. While US Unit Labor Costs improved to 2.2% in the second quarter from 1.6% prior, which was expected to remain consistent.

The recent surge in the strength of the US Dollar (USD) appears to be driven by investors' growing confidence in a more hawkish stance from the US Federal Reserve (Fed). This optimism stems from the consistent stream of positive data regarding the state of the US economy.

Market participants seem to factor in a 25 basis point (bps) interest rate hike during its November and December meetings. Along with the odds of maintaining interest rates at a higher level for an extended period.

Investor confidence continues to be restrained due to ongoing concerns about the worsening economic situation in China and the persistent trade tensions between China and the United States (US). These risks related to China's economic condition and trade dynamics could appeal to the traditional safe-haven Swiss Franc (CHF).

When there are no significant economic releases that could potentially impact the market, neither from the United States nor Switzerland, traders will likely observe the upcoming multiple speeches from Fed members.

USD/CHF: additional important levels

Overview
Today last price	0.8913
Today Daily Change	-0.0015
Today Daily Change %	-0.17
Today daily open	0.8928

Trends
Daily SMA20	0.8824
Daily SMA50	0.8778
Daily SMA100	0.8879
Daily SMA200	0.9056

Levels
Previous Daily High	0.894
Previous Daily Low	0.8908
Previous Weekly High	0.8865
Previous Weekly Low	0.8745
Previous Monthly High	0.8876
Previous Monthly Low	0.869
Daily Fibonacci 38.2%	0.8928
Daily Fibonacci 61.8%	0.8921
Daily Pivot Point S1	0.8911
Daily Pivot Point S2	0.8894
Daily Pivot Point S3	0.8879
Daily Pivot Point R1	0.8942
Daily Pivot Point R2	0.8957
Daily Pivot Point R3	0.8974

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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