• USD/CHF extends gains after recession-panic selling ebbs away.  
• Swiss manufacturers call their central bank to counter the Franc’s appreciation.  
• US inflation data released in days to come could further impact pair. 

USD/CHF rises almost half a percent on Monday to trade in the 0.8690s as the US Dollar (USD) extends its rebound against safe-haven currencies. The rally marks an over 3.0% recovery from the 0.8433 lows reached on August 5, when US recession fears led to panic selling in markets at the beginning of last week. 

A lower-than-expected US Nonfarm Payrolls result in July sparked the sell-off, however, markets regained their composure on Thursday after robust US Jobless Claims data helped reassure investors that the US economy was not falling into a recession. Since then the US Dollar has rebounded, particularly against the Swiss Franc (CHF), which especially benefited during the sell-off due to its safe-haven status, which attracts increased inflows during times of strife.

The depreciation of the Swiss Franc (CHF) will come as a relief to Swiss manufacturers who have been complaining about the Francs appreciation hampering their goods export competitiveness. 

“The Swiss National Bank is called upon to act quickly within the scope of its mandate,” said Swissmem, an association of Switzerland’s mechanical and electrical engineering manufacturers last Wednesday, according to Swissinfo.ch. “The SNB has the leeway to prevent or cushion any future shock appreciation using the instruments it considers best,” it added.