USD/CHF stays near three-week high set above 0.9050, eyes on of US NFP data
- USD/CHF touched its highest level in three weeks at 0.9055 on Friday.
- US Dollar Index holds above 90.50 following Thursday’s rally.
- Nonfarm Payrolls in US is expected to rise by 650,000 in May.
The USD/CHF pair gained more than 60 pips on Thursday and reached its highest level since May 14 at 0.9055 on Friday. However, the pair struggled to preserve its bullish momentum with the trading action turning subdued ahead of key macroeconomic data releases from the US.
US NFP is forecast to rebound in May
On Thursday, impressive macroeconomic data releases from the US and revived concerns over inflation provided a boost to the greenback and allowed USD/CHF to push higher. The US Dollar Index gained 0.65% on a daily basis and registered its best daily close in nearly three weeks at 90.50.
The ISM Services PMI and the Markit Services PMI both reached new series highs in May and the ADP Employment Change arrived at +978,000, beating the market expectation of +650,000 by a wide margin. The 10-year US Treasury Bond yield rose more than 2% following these data releases and helped the USD preserve its strength.
Later in the session, the US Bureau of Labor Statistics will release the May Jobs report. Investors expect the Nonfarm Payrolls to rise by 650,000 following April’s dismal 266,000 increase. Considering the market reaction to this week’s US data, the USD is likely to continue to outperform its rivals with a positive reading and vice versa.