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Early on Thursday, the USD/CHF pair declines to 0.9060 after an unsuccessful attempt to rebound from the 22-month low set the previous day. As a result, the Swiss Franc pair applauds the US Dollar’s general weakening before significant employment statistics.
On Wednesday, the dollar had a corrective rebound as negative US data sparked recession concerns. But, recent increases in the likelihood that the Fed won’t raise interest rates in May and threats to the dollar’s standing as a reserve currency appear to be exerting downward pressure on the dollar.
The USD/CHF pair falls back to the previous day’s recorded lows, which date to June 2021. Sentiment challenges gave the Swiss Franc pair a chance to show a corrective bounce. The USD/CHF exchange rate is impacted by negative US data and concerns of dedollarization.
The ADP Employment Change for March fell to 145K from 200K anticipated and a previously corrected prior of 261K, according to the statistics. On the same line, the final readings of S&P Global Composite and Services PMIs for March also came in downbeat as the former one declined to 52.3 from 53.3 preliminary estimations while the Services PMI dropped to 52.6 from 53.8 anticipated earlier.
More significantly, the US ISM Services PMI for the aforementioned month increased pessimism as it fell to 51.2 from 55.1 previously and 54.5 predicted.
