Weaker US jobs and services data reduce Fed rate hike bets, lifting the Swiss Franc against the Dollar.
The Swiss Franc gained against the US Dollar on Wednesday after US economic data fell short of expectations, weighing on the Greenback. USD/CHF dropped nearly 0.18% to around 0.8078 as traders reassessed Federal Reserve policy prospects.
US ADP employment rose by 44K in July, missing forecasts of 70K and slowing from June’s 98K. The ISM Services PMI edged up to 54.1 but lagged the 54.5 consensus. Meanwhile, easing tensions in the Strait of Hormuz pressured oil prices, further dampening inflation concerns.
Markets now price a 56% chance of a September Fed rate hike, down from 67% a day earlier. Attention shifts to Friday’s Nonfarm Payrolls report for further policy clues.