Swiss Franc weakens after June unemployment rate unexpectedly increases to 3.1%, while US Dollar gains on geopolitical risks and Fed policy bets.
The USD/CHF pair climbed 0.37% to around 0.8060 on Monday, driven by a stronger US Dollar and a surprise rise in Switzerland’s unemployment rate. The Swiss Franc faced pressure after June’s jobless rate increased to 3.1%, exceeding forecasts of 3% and May’s 3% print, signaling labor market softening.
The US Dollar rebounded despite softer expectations for Federal Reserve rate hikes, supported by geopolitical tensions in the Middle East. Markets now price a 76.9% chance of further Fed tightening by year-end, per the CME FedWatch tool. US ISM Services PMI matched expectations at 54 in June, with mixed subcomponents.
Investors await Wednesday’s FOMC minutes for additional policy clues, while the Dollar’s resilience continues to weigh on the Swiss Franc.