The USD/CHF pair continued its modest rebound on Thursday, building on Wednesday’s bounce from the mid-0.8800s, the lowest level seen since December 12. The pair climbed back above the 0.8900 mark during the Asian session, though a significant appreciation remains elusive as bearish sentiment surrounding the US Dollar (USD) lingers.
The USD Index (DXY), which measures the dollar against a basket of currencies, hit a four-month low, driven by expectations that the Federal Reserve (Fed) may cut interest rates multiple times this year. These expectations were further fueled by the disappointing ADP employment report on Wednesday, which revealed that US private-sector employers added only 77,000 jobs in February. Additionally, concerns over the potential economic impact of US President Donald Trump’s trade tariffs continue to weigh on the USD.
Despite the ongoing USD weakness, a recovery in US Treasury bond yields has helped cap further losses for the dollar. The positive tone in global equity markets has also weakened the safe-haven appeal of the Swiss Franc (CHF), providing some support to the USD/CHF pair.
However, traders remain cautious, with many opting to wait for a clear confirmation of a near-term bottom before positioning for further gains. The release of the US Nonfarm Payrolls (NFP) report on Friday is likely to influence the pair’s next move, prompting some traders to stay on the sidelines until then.
Related Topics:
