USD/CHF eases from 0.7965 intra-day highs as US Dollar’s recovery loses momentum
The US Dollar's recovery from multi-week lows against the Swiss Franc, at 0.7910, has failed to gain significant acceptance above 0.7965 and pulled back in the early European market session, leaving the pair practically unchanged in the daily chart.
The Grenback rallied on Thursday after US business activity data beat expectations, led by a significantly larger-than-expected improvement in the services sector that offset the unexpected contraction in manufacturing activity.
At the same time, data from the US Department of Labour revealed that claims for unemployment insurance fell for the sixth consecutive week, to 217,000 last week, from 221,000 in the previous week, against the market consensus, which had anticipated an increase to 227,000.
These figures endorse Fed Powell's “wait and see" stance and practically discard a rate cut after next week’s Fed meeting.
Also on Thursday, an unusual visit by US President Trump to the Federal Reserve ended without major incidents, aside from some criticism about the bank’s headquarters’ renovation costs and the traditional pressures to lower interest rates.
Apart from that, Trump assured that he is not planning to fire Powell, because that would be “a big move” and “unnecessary”, a possibility that had rattled markets in recent weeks and boosted concerns about the central bank’s independence.
Source : Fxstreet
