USD/CHF continues to lose ground ahead of US employment data, trades near 0.8480
- USD/CHF faces barriers despite improved Greenback.
- SNB might have intervened in the foreign exchange market to support the Swiss Franc.
- The risk-off mood turned the investors toward the US Dollar.
USD/CHF extends its losses for the second successive session on Thursday, trading lower near 0.8480 during the Asian trading hours. The USD/CHF pair experiences downward pressure despite improved US Dollar (USD), which could be attributed to the intervention in the foreign exchange market from the Swiss National Bank (SNB).
Additionally, the SVME Manufacturing Purchasing Managers Index (PMI) for December was released on Wednesday, with an improving figure of 43 from 42.1 prior. The buyers of Swiss Franc (CHF) might have been influenced by the improved business conditions in the manufacturing sector.
On the other side, the anticipation of sluggish global growth at the end of 2024 has triggered a risk-off market sentiment, leading investors to seek refuge in the US Dollar (USD). Additionally, the improvement in US bond yields reinforced the strength of the Greenback. The US Dollar Index (DXY) hovers near 102.40 after recent gains, with 2-year and 10-year yields on US Treasury bonds standing higher at 4.33% and 3.93%, respectively, by the press time.
The positive momentum of the USD appears to be bolstered by the favorable ISM Manufacturing PMI report on Wednesday, revealing an increase to 47.4 in December from the previous 46.7, surpassing the market consensus of 47.1. However, there is a contrasting trend as JOLTS Job Openings dipped to 8.79M, falling below the expected 8.85M figure for November.
Looking ahead, the market focus will be on Thursday's labor market data releases, including ADP Employment Change and Initial Jobless Claims, providing further insights into the economic scenario.