- USD/CHF gains almost 0.9110 in an early European session.
- Optimistic employment data in the US for January support the American dollar.
- Uncertainty and ongoing geopolitical tensions in the Middle East can boost safe and sound currency, such as CHF.
The USD/CHF pair collects strength to about 0.9110 during the early European session on Monday. The American Federal Reserve (FED) is expected to maintain interest rates this year after employment data in January in the USA, supporting Greenback. Powell testifies the chairman of the FED, will be the most vital event on Tuesday. Later on Wednesday, the consumer price inflation rate (CPI) will be concentrated.
The American dollar index (DXY), which measures USD in relation to six other units, currently trades around 108.20, gaining 0.14% during the day. The US economy has created 143,000 modern jobs in January, there is no economist estimates at 170,000 jobs. However, the unemployment rate dropped to 4.0% from 4.1% in December in January.
In addition, analysts have found that tariff policy by Trump’s administration may be inflationary and exert further pressure on increasing interest rates. This year, markets will value at 36 base points (BPS), compared to 42 BPS after an hopeful pay report on Friday. This, in turn, contributes to USD growth.
Frank Swiss (CHF) can appreciate in the coming months, because the Swiss National Bank (SNB) is unlikely to return to negative interest rates, said the analyst Commerzbank Michael Pfister in the note. SNB may end the cycle of lowering the rate of 0.0% policy rate compared to 0.5%. Meanwhile, global economic uncertainty and ongoing geopolitical tensions in the Middle East can boost safe and sound flows for the benefit of CHF.
