USD/CHF weakens sharply on Thursday as the US Dollar (USD) comes under broad selling pressure following a weaker-than-expected US Nonfarm Payrolls (NFP) report.
At the time of writing, the pair is trading around 0.8029, its lowest level since June 18, down nearly 0.80% on the day
Data released by the US Bureau of Labor Statistics (BLS) showed the US economy added 57K jobs in June, well below market expectations of 110K. Meanwhile, May’s payrolls were revised lower to 126K from the previously reported 172K. Despite the slowdown in hiring, the Unemployment Rate unexpectedly edged lower to 4.2% from 4.3% in May.
Average Hourly Earnings rose 0.3% MoM and 3.5% YoY in June, matching market expectations. Traders largely focused on the weak headline payrolls figure, prompting them to trim expectations for a near-term Federal Reserve (Fed) rate hike. According to the CME FedWatch Tool, the probability of a rate increase at the September meeting fell to 51% from 63% before the release of the employment report.