Traders reduce USD exposure before May Nonfarm Payrolls, expected to show 85K jobs added versus 115K in April.
The Swiss Franc strengthened against the US Dollar on Friday, with USD/CHF dropping to 0.7872, its lowest level in the session. The pair retreated from near two-month highs of 0.7927 earlier in the week as investors pared USD long positions ahead of key US labor market data.
Markets expect May Nonfarm Payrolls to rise by 85K, below April’s 115K gain but above last year’s 10K average. Stronger-than-expected figures could reinforce expectations for a Federal Reserve rate hike later this year amid persistent inflation pressures.
Geopolitical tensions in the Middle East also weighed on sentiment, supporting the safe-haven USD. Swiss inflation data released Thursday showed no change in May, reducing pressure on the Swiss National Bank to adjust policy.