Pre-NFP Support Helps USD/CHF Maintains Calm

USD/CHF found good support at its 200-day moving average for a third consecutive day on Thursday. The pair has been hovering just to the north at close to 0.9180 since Tuesday, during which time it has rolled within a fairly tight 0.9180-0.9220 range.

The pair has been going sideways despite Fed Chair Jerome Powell’s hawkish assessment of the state of the US economy in Congressional testimony earlier in the week.

Market participants keep tentative and cautious on placing big bets on the pair because of the most important US jobs data release on Friday as Fed will want to see strong gains in employment to agree on an acceleration of the QE taper at the 15 December meeting.

The outlook for the US economy is still clouded by the emergence of Omicron, this may see the US’s renewed lockdown which would benefit the Swiss franc which is a safe haven and not exposed to dovish central bank repricing.