USD/CHF edges higher amid risk-off flows and weak dollar momentum
2023.12.05 15:03
NEW YORK – The Swiss Franc’s long-term momentum has been putting pressure on the US Dollar, with broad-market risk-off flows influencing trading dynamics. Despite this trend, the currency pair managed to edge higher for a second consecutive session today, as traders position themselves ahead of nonfarm payroll (NFP) data that could influence Federal Reserve rate decisions.
In recent weeks, the Swiss Franc has gained over 3% against the Dollar since early November. However, after a fifteen-day streak without gains, the USD/CHF pair has seen a modest rebound from its recent low at 0.8666. This uptick occurs amidst market anticipation for the upcoming NFP prints, which are expected to play a pivotal role in shaping the Fed’s approach to potential rate cuts in the first half of the next year.
The labor market data complicates the Fed’s policy direction. October’s JOLTS Job Openings came in below expectations at 8.733 million jobs, against projections of 9.3 million. This shortfall highlights the tightness of the labor market and presents a challenge for the Fed as it considers rate cuts without stoking recession fears.
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