In Friday's session, the USD/CHF recovered surging above the 0.8965 mark.
Strong Nonfarm Payroll data from the US propelled the USD across the board.
US Treasury yields increased while the odds of a cut in September by the Fed slightly declined.
The USD/CHF pair is seeing a boost after updated Nonfarm Payroll (NFP) figures from the US were released on Friday, surpassing market expectations. As market bets on the Federal Reserve may turn more hawkish, the divergences with the Swiss National Bank (SNB) might favor the USD.
The newly reported NFP for May expanded to 272K up from 165K (April's revised reading), blowing market estimations of 185K. Strong data such as this has led to a decrease in the odds of a Fed rate cut happening in September. The Unemployment Rate in the US also rose to 4% from the previous 3.9%, with a small decline in the Labor Force Participation Rate, ticking down to 62.5% from the former 62.7%. Concurrently, the Average Hourly Earnings experienced a growth of 4.1% YoY from the revised 4% in April indicating a rise in wage inflation.
Following the release of the data, US Treasury yields spiked with the 2,5 and 10-year rates soaring to 4.80%, 4.44%, and 4.41% making the USD gain interest.
On the other hand, the SNB embarked on an easing cycle in its March meeting, reducing rates by 25 bps to reach 1.5%. As of now, the market predicts 55% odds for another rate cut happening in the upcoming meeting scheduled for June 20
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.