USD/CHF Holds Near 0.8050 as Markets Bet on Fed Rate Cut, Focus on NFP Data
The USD/CHF pair is trading close to 0.8050, as traders balance expectations of a Federal Reserve interest rate cut with the safe-haven strength of the Swiss franc.
The U.S. dollar weakened after disappointing labor market data. Initial Jobless Claims rose to 237,000, showing a softer jobs market, while the ADP employment report revealed only 54,000 new private-sector jobs. This has increased bets that the Fed will cut rates by 25 basis points in September to support the slowing U.S. economy.
Meanwhile, the Swiss franc (CHF) remains supported by strong safe-haven demand amid ongoing concerns about global inflation, debt levels, and market volatility. Investors are moving toward CHF as they seek stability, which is keeping downward pressure on USD/CHF.
From a technical perspective, the pair is stuck between 0.8050 and 0.8100, showing little momentum. Traders are now focused on the upcoming U.S. Nonfarm Payrolls (NFP) report. A strong reading could give the U.S. dollar a short-term boost, while weaker data might push USD/CHF lower, possibly breaking below key support levels.
Market participants believe that the outcome of the NFP report will play a major role in shaping Fed policy and setting the tone for USD/CHF price action in the weeks ahead.
Impact:
A weaker NFP report could trigger more USD selling, boosting safe-haven CHF. In contrast, strong jobs data may temporarily lift the U.S. dollar, supporting USD/CHF above 0.8100.
