USD/CHF loses traction near 0.8775 on the softer USD in Friday’s Asian session.
Fed’s Powell said he still expects to cut rates this year as long as the data continues to cooperate.
Swiss Unemployment Rate eased to 2.4% in February from 2.5% in January.
US February Nonfarm Payrolls and Unemployment Rate will be closely watched by traders.
The USD/CHF pair trades in negative territory below the 0.8800 mark during the Asian session on Friday. All eyes are on the US Nonfarm Payrolls (NFP) report due later on Friday. However, the cautious mood in the market might lift the safe-haven Swiss Franc (CHF) against the US Dollar (USD). At press time, USD/CHF is trading at 0.8775, down 0.03% on the day.
Fed Chair Jerome Powell reiterated on Thursday that he still expects to cut interest rates this year as long as the economic data continues to cooperate. However, the Fed officials need more confidence that inflation is returning to 2% before considering rate cuts. The US labor market data later in the day might offer some hints about the economic health of the US, influencing monetary policy decisions and market sentiment. The stronger-than-expected data could boost the Greenback and act as a tailwind for the USD/CHF pair.
On the Swiss front, Data released from the State Secretariat for Economic Affairs (SECO) on Thursday revealed that Switzerland’s Unemployment Rate eased to 2.4% in February from 2.5% in January.
Furthermore, the fall in Swiss inflation in February might fuel expectations that the Swiss National Bank (SNB) could cut interest rates later this month. The interest rate in Switzerland has stood at 1.75%, unchanged since June 2023. Financial markets expect the SNB to lower rates in the coming weeks.
Market players will focus on the US Nonfarm Payrolls for February, which is expected to see a 200K job addition. Additionally, the Unemployment Rate is forecast to hold steady at 3.7%, and finally, the Average Hourly Earnings are projected to drop to 0.2% MoM from 0.6% MoM in January.
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