The USD/CHF remains stable around 0.7960 in the early European session on Monday. Nonetheless, the possible upside for the pair could be constrained as market participants adopt a cautious stance in anticipation of significant economic data releases scheduled for later this week. The employment reports for the United States for the months of October and November are scheduled for release on Tuesday. The release of the US Consumer Price Index inflation data is scheduled for Thursday. The USD/CHF pair remains stable, hovering around 0.7960 during the early European session on Monday. Market participants are closely monitoring the upcoming US employment reports for October and November, scheduled for release on Tuesday.
The prevailing uncertainty and a risk-averse sentiment may enhance safe-haven inflows, thereby bolstering the Swiss Franc in the short term. Anticipations surrounding the US Federal Reserve’s potential interest rate cuts in 2026 are exerting pressure on the US Dollar relative to the Swiss Franc. The Summary of Economic Projections, commonly referred to as the “dot plot,” revealed a median forecast suggesting one further Fed rate reduction in the upcoming year. Meanwhile, the Swiss National Bank has kept its policy rate at 0% and is anticipated to uphold this position for a prolonged duration to control inflation.
Market participants are adopting a cautious stance as they prepare for the important US economic data set to be released later this week. The release of the US Nonfarm Payrolls data for October and November, previously postponed because of a US government shutdown, is scheduled for Tuesday. The current risk-off market environment may bolster the safe-haven currency such as the Swiss Franc and potentially serve as a headwind for the pair.
“From the perspective of policymakers… this set of data, regardless of the outcome, is likely to be interpreted with greater caution than usual.” Sim Moh Siong said “The main thing you want to do is to tease out the trend in terms of the labour market in the US. ” Market participants will pay careful attention to these reports, as they may provide insights into the condition of the labor market and the trajectory of US interest rates. Should there be a stronger-than-anticipated result, this may bolster the Greenback relative to the CHF in the short term.