USD / CHF rises to two-week highs after NFP figures, looking at 0.9255 level

• USD / CHF gained some positive traction on Friday and soared to two-week highs.
• The disappointing NFP figures were offset by a further drop in the unemployment rate.
• Rising US yields acted as a tailwind for the USD.

The pair USD/CHF it finally broke its intraday consolidation range and spiked to a two-week high around the 0.9230-35 area during the early days of the American session.

The latest rebound seen in the last hour or so followed the release of the US Mixed Jobs report, which showed the US economy added 199,000 new jobs in December. This was well below consensus estimates that pointed to a reading of 400,000, although it was offset by an upward revision of the previous month’s figure to 249,000 from 210,000 previously reported.

In addition, the unemployment rate fell more than expected to 3.9% from 4.2% in November. Despite the disappointing NFP headline, the additional details reinforced speculation about an eventual Fed takeoff in March. This was evident by a new boost in US Treasury yields, which provided a modest rise to the US dollar and the USD / CHF pair.

In fact, the yield on the 10-year US government bond rose to levels not seen since March 2021. In addition, the US 2-year notes, which are highly sensitive to upside expectations of rates along with the 5-year notes, which rose to a nearly two-year high. However, the USD bulls seemed reluctant to make aggressive bets.

Aside from this, an intraday drop in equity markets extended some support to the safe haven Swiss franc and kept any significant gains for the USD / CHF pair in check. However, sustained strength overnight beyond the 0.9200 round number and subsequent bullish movement support prospects for a further short-term appreciation move.

Technical levels