USD/CHF holds above 0.9100 mark, close to multi-month peak ahead of US NFP
10.01.2025, 04:53

USD/CHF holds above 0.9100 mark, close to multi-month peak ahead of US NFP

  • USD/CHF remains within striking distance of a multi-month peak touched last week. 
  • The Fed’s hawkish shift keeps the US bond yields elevated and underpins the USD.
  • Bets for more rate cuts by the SNB weigh on the CHF and also lend support to the pair.
  • A weaker risk tone benefits the safe-haven CHF and cap gains ahead of the US NFP.

The USD/CHF pair consolidates its gains registered over the past three days and oscillates in a narrow trading band, around the 0.9120 area during the Asian session on Friday. Spot prices, meanwhile, remain close to the highest level since May touched last week as traders opt to await the release of the US monthly employment details before placing fresh directional bets.

The popularly known US Nonfarm Payrolls (NFP) report is expected to show that the economy added 160K jobs in December, down from 227K in the previous month, while the Unemployment Rate is expected to hold steady at 4.2%. Apart from this, the focus will be on the wage growth data, which, in turn, will play a key role in influencing the near-term US Dollar (USD) price dynamics and provide some meaningful impetus to the USD/CHF pair. 

Heading into the key data risk, the prospects for slower interest rate cuts by the Federal Reserve (Fed) remain supportive of elevated US Treasury bond yields and assist the USD to stand firm near a two-week top. Apart from this, expectations for more rate cuts by the Swiss National Bank (SNB) this year, bolstered by a further fall in Swiss consumer inflation in December, act as a tailwind for the USD/CHF pair and support prospects for further gains.

Meanwhile, concerns about US President Donald Trump's tariff plans, along with persistent geopolitical risks stemming from the protracted Russia-Ukraine war and tensions in the Middle East, continue to weigh on investors' sentiment. This is evident from a generally weaker tone around the equity markets, which could support the safe-haven Swiss Franc (CHF) and keep a lid on the USD/CHF pair, warranting some caution for bulls.

US Dollar PRICE This week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the British Pound.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   0.14% 1.06% 0.78% -0.26% 0.46% 0.53% 0.31%
EUR -0.14%   0.91% 0.59% -0.34% 0.36% 0.42% 0.21%
GBP -1.06% -0.91%   -0.31% -1.24% -0.54% -0.48% -0.70%
JPY -0.78% -0.59% 0.31%   -1.04% -0.29% -0.22% -0.24%
CAD 0.26% 0.34% 1.24% 1.04%   0.65% 0.74% 0.55%
AUD -0.46% -0.36% 0.54% 0.29% -0.65%   0.06% -0.15%
NZD -0.53% -0.42% 0.48% 0.22% -0.74% -0.06%   -0.22%
CHF -0.31% -0.21% 0.70% 0.24% -0.55% 0.15% 0.22%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

 

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