Market Analysis

USDCHF rose for the second consecutive session on Monday, approaching 0.9050 during European trading hours. Israel's decision to withdraw further troops from southern Gaza, probably in response to mounting international pressure, has helped to reduce tensions. Furthermore, peace talks between Israel and Hamas have resumed in Egypt, easing concerns that demand for the safe-haven Swiss Franc (CHF) will fall.

In other news, the Swiss unemployment rate, which is not seasonally adjusted, rose by 2.3% month on month in March, slightly higher than the prior rise of 2.2%. In March 2024, the unemployment rate was 2.4%, unchanged from the previous month on a non-seasonally adjusted basis.

At the time of writing, the US Dollar Index (DXY) is trading higher around 104.30, boosted by a surprise increase in Nonfarm Payrolls (NFP) data. The excellent labor market performance in March, which exceeded forecasts, has fueled bullish sentiment toward the US dollar.

The NFP recorded a huge rise of 303,000 jobs in March, above estimates by 200,000. However, the earlier growth rate of 275,000 was reduced down to 270,000. 

Additionally, US Average Hourly Earnings increased by 0.3% month on month in March, surpassing forecasts. On an annual basis, there was a 4.1% gain, in line with market expectations but slightly lower than the previous figure of 4.3%.

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Paraphrasing text from "FX Street " all rights reserved by the original author.