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  • USD/CHF stages a technical correction after Thursday’s upsurge.
  • US Dollar Index posts small daily losses, stays near 91.50.
  • Markets expect Nonfarm Payrolls in US to rebound following December’s decline.

The USD/CHF pair finally broke above the key 0.9000 level on Thursday and touched its highest level in more than two months at 0.9046. On Friday, the pair is trading in a relatively tight range and was last seen losing 0.12% on the day at 0.9033.

Focus shifts to US NFP report

The USD’s market valuation remains the primary driver of USD/CHF’s movements this week. The US Dollar Index, which tracks the greenback’s performance against a basket of six major currencies, extended its rally into a fifth straight day on Thursday and rose above 91.50 for the first time since early December. The upbeat macroeconomic data releases from the US revived optimism for a steady economic recovery in the US and allowed the USD to outperform its rivals.

Later in the session, the US Bureau of Labor Statistics will publish its monthly labour market report. Investors expect Nonfarm Payrolls (NFP) to increase by 50,000 in January following December’s decrease of 140,000. 

Previewing the NFP data, “we estimate that non-farm payroll employment was broadly unchanged in January but the recent fiscal support and drop-back in new virus cases suggest the labour market recovery will resume soon,” said Capital Economics analysts.

Nonfarm Payrolls Preview: Forecast from 10 major banks for January jobs report.

A better-than-expected NFP print could help the USD regather its strength and lift USD/CHF higher ahead of the weekend.

Technical levels to watch for