Markets slash September Fed rate hike probability to 52% after US jobs growth misses forecasts by 53,000 positions.
USD/CHF declined to 0.8020 in Asian trading Friday, extending losses as the US Dollar weakened on softer-than-expected US labor data. The June Nonfarm Payrolls report showed just 57,000 jobs added, well below the 110,000 consensus, signaling economic cooling.
Prior to the release, markets priced a 66% chance of a September Fed rate hike, but odds fell to 52% post-data. Unemployment dipped to 4.2%, though the sharp hiring slowdown overshadowed the decline. Fed Chair Kevin Warsh reaffirmed the 2% inflation target but noted moderating price pressures.
Swiss inflation met forecasts in June, rising 0.5% year-on-year, its slowest pace since March. Monthly prices remained flat, missing the 0.1% increase expected, while core inflation held at 0.3%.