- USD/CHF gains 0.80% on the week after buyers reclaimed the 0.8700 level.
- US labor market data remains weak, justifying rate cuts by market participants for 2024.
- Next: Traders’ attention is focused on the US Non-Farm Payrolls report.
USD/CHF posts decent gains of 0.12% on the day to start the North American session, and extends its weekly gains to 0.80% as buyers reclaim the 0.8700 level. At the time of writing, the pair is trading at 0.8764 after hitting a daily low of 0.8729.
USD/CHF points higher ahead of US NFP data
The United States (US) economic calendar is very tight and is keeping USD/CHF traders entertained. First, Challenger job cut figures revealed that US employers cut 45,510 employees from the workforce, surpassing October numbers, while the US Department of Labor revealed jobless claims. Initial jobless claims for the week ending December 2 missed estimates of 222,000, increased by 220,000 but exceeded the previous week’s 219,000.
That said, there is only one employment-related report for the week. US Nonfarm Payrolls on Friday are expected to show that the US economy created 180,000 jobs in November, up from 150,000 in October, while the unemployment rate is estimated to remain around 3.9 %.
With the latest numbers from JOLTs and ADP suggesting the labor market has cooled, if tomorrow’s jobs report is weaker than expected, it could be the final nail in the coffin for the US Federal Reserve ( Fed), as investors seem convinced that the Fed is done tightening monetary conditions.
Fed Interest Rate Expectations
Meanwhile, money market futures had priced in 135 basis points of rate cuts by the Fed for next year, likely to begin in May, according to Chicago Board of Trade (CBOT) data.
On the other hand, the unemployment rate in Switzerland reached 2.1%, up from 2% in October, although it barely moved the needle. Traders of the USD/CHF pair continue to pay attention to the dynamics of the US dollar.
USD/CHF Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
