USD / CHF hits nearly three-month highs around 0.9275 before NFP

• Widespread USD strength pushes USD / CHF to nearly three-month highs on Friday.
• Optimum Fed expectations continue to prop up the USD and support the pair’s upward move.
• The monthly NFP jobs report should help determine the pair’s next directional move.

The pair USD/CHF has captured some new purchases during the European session on Friday and has reached nearly three-month highs around the 0.9275 region.

After the two-way price action of the previous day, the USD / CHF pair has managed to regain some positive traction on Friday and has been seen supported by a broad strength of the US dollar. Speculation that the Fed will tighten its monetary policy sooner if price pressures continue to intensify has acted as a tailwind for the USD.

Market expectations were further fueled by US ISM manufacturing PMI survey Wednesday, which showed prices paid jumped to a record 92.1 in June. This, to a greater extent, helped offset a further decline in US Treasury yields and continued to prop up the USD and provided a modest rise to the USD / CHF pair.

On the other hand, the predominant risk appetite, as evidenced by a generally positive sentiment around the stock markets, has weighed on demand for traditional safe-haven currencies such as the Swiss franc. This has been seen as another factor that has continued to support the continued positive movement of the USD / CHF pair to the highest level since April 9.

Now it will be interesting to see if the bulls can capitalize on the momentum or opt to withdraw some gains. before monthly United States employment data. The NFP report could influence the Fed’s political outlook. This, in turn, will play a key role in the USD price action in the near term and help determine the next directional move for the USD / CHF pair.

USD / CHF technical levels