The USD/CHF pair extends losses for the second consecutive session, trading near 0.8480 during Asian hours. Downward pressure persists, even with a stronger US Dollar (USD), potentially influenced by Swiss National Bank (SNB) intervention. The recent release of SVME Manufacturing PMI for December showed improvement at 43, supporting the Swiss Franc (CHF).
Despite an overall rise in the USD, concerns over sluggish global growth at the close of 2024 drive a risk-off sentiment, prompting investors to seek refuge in the Greenback. Improved US bond yields further strengthen the USD, with the US Dollar Index (DXY) near 102.40.
The positive momentum in the USD is reinforced by a favorable ISM Manufacturing PMI report, revealing a December increase to 47.4. However, JOLTS Job Openings for November dip to 8.79M, below the expected 8.85M.
Market attention shifts to Thursday’s labor market data releases, including ADP Employment Change and Initial Jobless Claims, providing additional insights into the economic landscape.
Trade Idea:
Monitor USD/CHF for potential reversal signals, considering SNB intervention and global economic concerns impacting the pair.