- USD/CHF is pushing lower after touching multi-month highs on Thursday.
- US Dollar Index stays calm below 93.00 on Friday.
- Nonfarm Payrolls in US is expected to increase by 647,000 in March.
The USD/CHF pair rose to its highest level since July at 0.9474 on Thursday but reversed its direction to close in the negative territory. With the trading volume thinning out due to the Easter holiday on Friday, the pair is posting small daily losses a little above 0.9400.
Investors expect strong job growth in US in March
The sharp upsurge witnessed in Wall Street’s main indexes on the back of strong data and falling US Treasury bond yield weighed heavily on the greenback on Thursday. The ISM’s monthly report showed that the economic activity in the US manufacturing sector expanded at its strongest pace since 1983 with the Manufacturing PMI rising to 64.7 from 60.8.
The US Dollar Index (DXY), which tracks the USD’s performance against a basket of six major currencies, lost 0.3% to close below 93.00 and the S&P 500 Index notched a new all-time high above 4,000.
On Friday the DXY is fluctuating in a very tight range around 92.90 as investors await the US jobs report for March. The market consensus points to an increase of 647,000 in Nonfarm Payrolls (NFP).
Previewing the data, “in the US, vaccinations are progressing rapidly and restrictions are easing nationwide,” said analysts at RBC Economics. “This tees up for another month of job gains in March, building on February’s large 379K rise.”
Nonfarm Payrolls Preview: Forecast from eight major banks for March jobs report.
Technical levels to watch for