Weaker US jobs data reduces expectations for an immediate Fed rate increase, pressuring the dollar against the Swiss franc.
The USD/CHF pair remains under pressure below 0.8100 in early European trading, weighed by softer US Nonfarm Payrolls data released Friday. The report dampened expectations for an imminent Federal Reserve interest rate hike, undermining the US dollar’s appeal.
Investors still anticipate a potential rate increase later this year due to inflation risks tied to energy supply disruptions. Geopolitical uncertainties may also limit aggressive selling of the safe-haven dollar, capping further losses for the pair.
Technical indicators suggest cautious bearish momentum, with the pair holding below the 23.6% Fibonacci retracement level. A break below the 50-day SMA could signal further downside, while US inflation data this week will provide fresh cues on the Fed’s policy trajectory.