USD/CHF edges lower to near 0.8200 despite easing trade-war jitters
USD/CHF halts its two-day winning streak, trading around 0.8210 during the Asian hours on Monday. The pair’s depreciation is attributed to the US Dollar (USD) pullback after posting around 0.50% gains on Friday.
The Greenback received support from stronger-than-expected United States (US) labor market data for May, raising expectations that the Federal Reserve (Fed) will keep its benchmark interest rate unchanged at its next two monetary policy meetings.
US Nonfarm Payrolls (NFP) posted 139,000 new jobs added new jobs in non-agricultural businesses in May, higher than the market consensus of 130,000.
Moreover, the Unemployment Rate remained steady at 4.2% and the Average Hourly Earnings remained unchanged at 3.9%, both readings came in stronger than the market expectation.
However, the downside of the USD/CHF pair could be restrained as the US Dollar may appreciate amid easing trade-war tensions. Moreover, improved risk sentiment may weaken safe-haven demand for the Swiss Franc (CHF).
US President Donald Trump and China’s Xi Jinping spoke and agreed on Thursday that officials from both sides would soon resume trade negotiations aimed at ending the trade war. US Treasury Secretary Scott Bessent and two other Trump administration officials are set to meet with Chinese officials on Monday.
Source: FXStreet