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Forex - USD/CHF claws back from record low as Fed speakers eyed

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Forex Pros - The U.S. dollar clawed back up from a record low against the Swiss franc on Monday, trimming losses following Friday's steep fall on the back of weaker-than-expected U.S. nonfarm payrolls data.

USD/CHF hit 0.8378 during European morning trade, the daily high; the pair subsequently consolidated at 0.8372, rising 0.42%.

The pair was likely to find short-term support at 0.8326, the pair's all-time low and short-term resistance at 0.8445, Friday's high.

On Friday, the U.S. Department of Labor said nonfarm payrolls rose much less-than-expected in May, increasing by just 54K as the private sector posted the smallest jobs gain in nearly a year.

Analysts had expected nonfarm payrolls to rise by 169K last month. The slowdown in job creation pushed the unemployment rate up to a five-month high of 9.1% from 9.0% in April.

The weaker-than-expected data reinforced expectations that the Federal Reserve is likely to keep rates on hold for the rest of the year.

However, overall risk aversion waned after European Union and International Monetary Fund authorities said Friday that Greece would likely get the next tranche of money from last year's EUR110 billion bailout in July.

The Swissie was also down against the euro, with EUR/CHF rising 0.29% to hit 1.2239.

Later Monday, Philadelphia Federal Reserve Bank President Charles Plosser and Dallas Fed President Richard Fisher were scheduled to speak. Their comments would be closely watched for their views on the U.S. economic recovery.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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