- USD/CHF remains near the multi-month high reached last week.
- Fed’s hawkish shift keeps US bond yields elevated and supports USD.
- Expectations of further rate cuts by the SNB weigh on the CHF and also lend support to the pair.
- Weaker risk tone benefits safe-haven CHF and caps gains ahead of US NFP.
The USD/CHF pair consolidates its gains recorded in the last three days and oscillates in a tight trading range, around the 0.9120 area during the Asian session on Friday. Meanwhile, spot prices remain near the highest level since May reached last week, as traders choose to wait for the release of monthly US employment details before opening new directional positions.
The popularly known US Nonfarm Payrolls (NFP) report is expected to show that the economy added 160,000 jobs in December, down from 227,000 the previous month, while the unemployment rate is expected to decline. remain stable at 4.2%. In addition to this, the focus will be on wage growth data, which, in turn, will play a key role in influencing the near-term price dynamics of the US Dollar (USD) and providing a significant boost to the USD/CHF pair. .
Ahead of key data risk, prospects for slower rate cuts by the Federal Reserve (Fed) continue to support elevated US Treasury yields and help the USD remain firm near a maximum of two weeks. In addition to this, expectations of further rate cuts by the Swiss National Bank (SNB) this year, reinforced by a further drop in consumer inflation in Switzerland in December, act as a tailwind for the USD/CHF pair and support the prospects for further profits.
Meanwhile, concerns over US President Donald Trump’s tariff plans, along with lingering geopolitical risks from the protracted war between Russia and Ukraine and tensions in the Middle East, continue to weigh on investor sentiment. . This is evident by a generally weaker tone in equity markets, which could support the safe-haven Swiss Franc (CHF) and cap the USD/CHF pair, warranting some caution for bulls.
US Dollar PRICE This Week
The table below shows the percentage change of the US Dollar (USD) against major currencies this week. US dollar was the strongest currency against the Pound sterling.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.14% | 1.06% | 0.78% | -0.26% | 0.46% | 0.53% | 0.31% | |
| EUR | -0.14% | 0.91% | 0.59% | -0.34% | 0.36% | 0.42% | 0.21% | |
| GBP | -1.06% | -0.91% | -0.31% | -1.24% | -0.54% | -0.48% | -0.70% | |
| JPY | -0.78% | -0.59% | 0.31% | -1.04% | -0.29% | -0.22% | -0.24% | |
| CAD | 0.26% | 0.34% | 1.24% | 1.04% | 0.65% | 0.74% | 0.55% | |
| AUD | -0.46% | -0.36% | 0.54% | 0.29% | -0.65% | 0.06% | -0.15% | |
| NZD | -0.53% | -0.42% | 0.48% | 0.22% | -0.74% | -0.06% | -0.22% | |
| CHF | -0.31% | -0.21% | 0.70% | 0.24% | -0.55% | 0.15% | 0.22% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the box will represent USD (base)/JPY (quote).
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.
