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- The Swiss Franc is gaining against most major pairs on Monday after sinking in the US morning session. Strong US jobs data from Friday led the CHF into weakness at the start of the week, but the Swiss Franc gained later in the session due to investors positioning for several major central banks’ policy decisions later in the week.
- The USD/CHF has dropped 0.17%, while the EUR/CHF has sunk 0.16% at the time of writing. The GBP/CFH is trading 0.10% lower.
Daily digest market movers: USD/CHF edges higher ahead of US CPI data and Fed meeting
- The Swiss Franc continues to edge lower versus US Dollar (USD) on Monday after the release of the US Nonfarm Payrolls report for November showed an above-expectations improvement in most metrics, including the Unemployment Rate, which fell to 3.7% from the 3.9% forecast.
- The data indicates the US economy is healthier than many economists had thought and that fresh inflationary pressures may still emerge.
- This could make the US Federal Reserve (Fed) keep interest rates higher for longer and delay any rate cuts the market was anticipating in 2024.
- Higher-for-longer interest rates will benefit the US Dollar since they attract higher capital inflows.
- The next big data release for the US Dollar is US CPI data for November, scheduled for release at 13:30 GMT on Tuesday, December 12.
Swiss Franc technical analysis: USD/CHF continues short-term bullish trend
USD/CHF – the number of Swiss Francs that one US Dollar can buy – continues to gently push higher on Monday.
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US Dollar vs Swiss Franc: Daily Chart
The MACD has completed a bullish cross (circled) in negative territory, adding more evidence, signaling potentially more upside on the horizon.
The short-term trend is bullish, and more gains are possible. The 0.8825 target, which offers soft resistance, has almost been met. If surpassed, prices could rise to the confluence of major moving averages residing at 0.8900, where tougher resistance is expected.
A break below the 0.8667 lows would negate the recovery and see bears back in charge, with likely losses to the 0.8552 July lows.
Daily digest market movers: EUR/CHF trades flat ahead of ECB meeting
- The Swiss Franc reverses a weak open and edges higher against the Euro on Monday.