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USD/CHF retreats to 0.9930 on a stronger Swiss franc

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The Swiss franc gained momentum across the board during the American session and erased losses against the US dollar and hit a fresh high versus the pound and the euro.

    bottomed after the release of the NFP report at 0.9880, the lowest level in four weeks but then bounced to the upside and climbed to 0.9983. Greenback failed to hold to gains while the Swissy strengthened and pushed the pair toward 0.9930/40, the same level it closed yesterday.

    While USDCHF held relatively steady and far from the highs while EUR/USD and GBP/USD remained in negative territory, trading near daily lows.

    NFP and reserves data

    Despite the main number of the NFP was below expectation, the details in the US employment report contained positive signs: a gain of 0.5% in hourly gains and a decline in the unemployment rate to 4.9%, the lowest level in eight years. The data initially weakened the dollar but then gained momentum.

    On European hours, international reserves data from the Swiss National Bank was published. Foreign currency reserves at the SNB rose from 559,548 million francs to 575,420 in January reaching an all-time high. According to Bloomberg, the 3% increase was boosted by the CHF dropping against the euro and the dollar.
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