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USD/CHF snaps two-day downtrend as buyers prepare for US jobs report.
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A cautious mood, yield increases allow the bears to take a breather between lazy sessions.
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US NFP could recall pair bears on downbeat forecasts, dovish Fed outlook.
USD/CHF picks up bids to pare recent losses around the lowest levels in a fortnight during early Friday. That said, the Swiss Franc (CHF) pair rebounds to 0.9385 by the press time.
The quote’s latest consolidation could be linked to the anxiety ahead of the key US employment data, as well as recent comments from International Monetary Fund (IMF) Managing Director Kristalina Georgieva.
The cautious mood ahead of US nonfarm payrolls (NFP) gained extra strength after New York Fed’s John Williams said the Fed has a ways to go with rate hikes.
On the other hand, the IMF’s Georgieva said that while the risk of recession is increasing for many countries, the outlook for global growth is exceptionally uncertain and dominated by risks.
Also fears surrounding a slowdown in the initial public offering (IPO) market could be a possibility for the USD/CHF bear to investigate.
Portraying the mood, S&P 500 futures fell 0.30% intraday to 4,070 while the US 10-year Treasury yield printed a corrective bounce from a 10-week low of 3.54% by press time.
However, the USD/CHF bears remain hopeful as the majority of the Fed policymakers, including Chairman Jerome Powell advocated for easy rate hikes. On the same line were the comments from US Treasury Secretary Janet Yellen. Furthermore, mostly downbeat United States data also weigh on USD/CHF prices.
It should be noted that the softer economics from Switzerland also challenged the USD/CHF bears of late. Swiss Real Retail Sales dropped by 2.5% YoY in October versus anticipated growth of 3.3% and 2.5% (revised) prior. Additionally, the nation’s Consumer Price Index (CPI) matched 3.0% YoY forecasts and prior while missing on MoM to 0.0% versus 0.1% expected and previous readings.
To sum up, USD/CHF portrays the pre-data correction and is likely to decline further after the US statistics. Forecasts suggest that the headlines Nonfarm Payrolls (NFP) is likely to ease with a 200K print versus 261K prior while the Unemployment Rate could remain unchanged at 3.7%.
Technical analysis
Despite the latest rebound, the USD/CHF bears remain hopeful of breaking the previous monthly low of 0.9355 unless the quote stays firmer beyond the support-turned-resistance line from November 15, close to 0.9415 by the press time.
ADDITIONAL IMPORTANT LEVELS
