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While US NFP data jumps to a healthy 336K, the USD/CHF plunges to a weekly low of 0.9074. The US dollar’s upward trend falters as the DXY index retreats by 0.34% and drops back below the critical 106.00 level.
To predict future USD/CHF dynamics, the market will be watching Fed officials, upcoming meeting minutes, and important inflation statistics. While the downward reversal was briefly stopped when the pair crossed the level of 0.9100, the Swiss Franc continued to climb against the US Dollar. However, selling pressure outperformed purchasers who were trying to stop the decline.
The USD/CHF exchange rate recently dipped to a new weekly low of 0.9074. Although US Nonfarm Payrolls were strong, USD/CHF fell to a new weekly low. The US Department of Labour released the most recent Nonfarm Payrolls data, which exceeded expectations as hiring increased by 336K in September, more than doubled the 170K, and exceeded the August statistics’ upwardly revised numbers by 227 K.
If you delve a little further, you’ll find that the Unemployment Rate remained at 3.8%, unchanged from August, and that Average Hourly Earnings fell from 4.3% to 4.2% below forecasts.
The USD/CHF reached a daily high of 0.9175 after the data was released, but the major reversed that leg-up and fell since the US dollar rally was overbought. The US Dollar Index, which compares the value of the dollar to a basket of six different currencies, falls 0.34%, or under the 106.00 level.
Market participants had raised the Fed’s odds of 25 basis points for the December meeting, which now stood at 42.04%. USD/CHF traders would get some insights for the following week from Fed officials, the Fed’s most recent meeting minutes, and inflation data.
