- USD / CHF makes a technical correction after Thursday’s rally.
- The DXY US Dollar Index posted small daily losses, hovering near 91.50.
- Markets expect US nonfarm NFP payrolls to rebound after the December crash.
The pair USD/CHF finally broke above the key 0.9000 level on Thursday and reached its highest level in more than two months at 0.9046. On Friday, the pair is moving within a relatively tight range. At the time of writing, the pair is shedding 0.04% on the day at 0.9036.
The focus shifts to the US NFP report.
USD price action remains the main driver of USD / CHF movements this week. The US dollar DXY index, which measures the dollar’s performance against a basket of the six major currencies, extended its rally for a fifth straight day on Thursday and rose above 91.50 for the first time since early December. Upbeat macroeconomic data released by the US reignited optimism for an economic recovery constant in the country and allowed the USD to outperform its rivals.
Later in the day, the US Bureau of Labor Statistics will release its monthly labor market report. Investors expect that NFP non-farm payrolls increase by 50,000 new jobs in January after declining 140,000 in December.
Better-than-expected NFP data could help the USD regain strength and lift USD CHF before the weekend.
USD / CHF technical levels
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