USD/CHF seesaws near 2-week top ahead of Swiss unemployment rate

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  • USD/CHF gains traction as the market holds risk-on sentiment, reducing safe-haven demand of the Swiss Franc (CHF).
  • June month Unemployment Rate from Switzerland will be the key.
  • Speeches from Fed policymakers and trade headlines will be followed for fresh impulse afterward.

With the receding pessimism surrounding the US Federal Reserve’s monetary policy easing, the USD/CHF pair extends its recent recovery to the highest since June 20 as it trades near 0.9941 ahead of Europe open on Tuesday.

The Swiss Franc is often considered as a safe haven and bought during market uncertainty, pessimism.

Friday’s upbeat employment data from the US tamed expectations of a 50 basis points (50 bps) rate cuts into the US Federal Reserve’s key interest rate, i.e. the Fed Rate.

However, investors will seek clues as to how many and of what magnitude of the easing measures can be taken by the US central bank during this week’s multiple public appearances by the US monetary policymakers.

For today, June month seasonally adjusted Unemployment Rate for Switzerland will become an immediate catalyst. The jobless gauge is expected to remain unchanged at 2.4% on a monthly basis.

Elsewhere speeches from Chairman Jerome Powell, Federal Reserve Bank of St. Louis President James Bullard and the Federal Reserve Bank of Atlanta Chief Raphael Bostic will be the key to observe.

Additionally, the US and Chinese trade tussles are also in the markets’ radar and may renew risk-off sentiment. The global risk gauge, 10-year treasury yield remain mostly flat around 2.034% by the press time.

Technical Analysis

50-day and 200-day simple moving averages around 0.9982/86 offer key resistance confluence to the quote, a break of which can propel prices to 1.000 round-figure and then to June month top near 1.0016. Meanwhile, early-July high near 0.9890 and June-end high close to 0.9780 could flash on sellers’ radar during the pair’s pullback.

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