USD/CHF Rose On Firm U.S Dollar, Upbeat Jobs Data

Fundamental Analysis

* Payroll Surge: The USD/CHF pair extends its gains in early trading, buoyed by a stronger dollar following Friday’s upbeat U.S. jobs report. The Greenback’s momentum is fueled by December’s Nonfarm Payrolls (NFP) data, which showed a net job addition of 256K, surpassing the forecast of 160K, despite a slight downward revision of November’s figure to 212K. The robust labor market data strengthens expectations that the Federal Reserve will refrain from additional rate cuts at its January policy meeting. The CME FedWatch tool indicates that markets widely expect the Fed to keep its benchmark rate steady at 4.25%-4.50%. Furthermore, major financial institutions like Bank of America (BAC) and Goldman Sachs (GS) have released research notes post-NFP, highlighting a consensus that the Fed is likely to scale back on rate cuts in 2025. Since September 2024, when the Fed began its easing cycle, it has already reduced rates by 100 basis points.

Technical Analysis

*Technical Breakout: USDCHF was traded higher while currently testing the resistance level 0.91650. MACD which illustrate diminishing bearish momentum signal suggest the pair to likely extend its gains after it breaks above the level.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 0.93250 after it breach above the level 0.93250. Conversely, a potential reversal is also to be expected and the price could head back towards 0.90250.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, investors will turn their attention to key U.S. inflation indicators this week, which include the Producer Price Index (PPI), Consumer Price Index (CPI), and Retail Sales data, to assess market sentiment and potential economic trends.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US and Swiss data, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.