USD/CHF steady ahead of CPI data release
USDCHF on Friday drew a bearish candle with shadows on the upper and lower sides, where the lower shadow is longer than the upper shadow. The price formed a high of 0.83180 low of 0.82057 and closed at 0.82539.
The Swiss Franc pair weakened as the US Dollar continued its correction after the release of the US Nonfarm Payrolls (NFP) data for April in early trading, but the Swiss Franc eventually strengthened to close lower than the opening price.
The NFP report showed that the economy added 177k new jobs, much higher than the estimate of 130k, but slightly lower than March's reading of 185k. The Unemployment Rate remained steady at 4.2%, as expected.
The Fed is predicted to keep interest rates on hold despite President Trump trying to pressure the Fed to cut rates soon. According to the CME Group's Fedwatch tool, the probability of the Fed holding rates at 4.50% is 96.8% at its May 7 meeting.
Trump wrote via Truth.Social "Gasoline prices just hit $1.98 a gallon, lowest in years, grocery prices (and eggs!) are down, energy is down, mortgage rates are down, employment is strong, and lots of other good news, as billions of dollars are flowing in from tariffs. As I said, we are just in the transition phase, just getting started!!! Consumers have been waiting years to see prices come down. No inflation, the Fed must lower rates!!!
The Dollar Index (DXY), which tracks the performance of the USD against a basket of six major currencies on Friday drew a bearish candle with an open of 100.179 high of 100.328 low of 99.397 close of 100.036. The DXY tried to rise but was held back by the 20 EMA, which acted as dynamic resistance at 100.471.
Meanwhile, the Swiss Franc's performance in the last week's movement tended to be mixed, with steady movement in the market range of 0.81953 - 0.83346 near the middle band line.
Today ahead of the release of the Consumer Price Index (CPI) data, the Swiss Franc is slightly lower than the open. The Swiss CPI is expected to grow by 0.2% month-on-month after remaining flat in March.