The USD/CHF pair trades 0.15% higher near 0.7930 during Monday’s Asian session, reflecting a cautious start to the week. The Swiss Franc comes under mild pressure as the US Dollar strengthens amid heightened risk-off sentiment, driven by the United States’ strike on Venezuela and the capture of President Nicolás Maduro on drug-trafficking charges in New York.
At the time of writing, the US Dollar Index (DXY), which measures the greenback against six major currencies, is up 0.25% near 98.66. Investors are bracing for potential volatility in the USD this week as a series of high-impact US economic releases approach, notably the December Nonfarm Payrolls (NFP) report.
The NFP data will play a key role in shaping expectations for the Federal Reserve’s policy path in January, particularly given that 2025 rate cuts were largely driven by labor market weakness.
Key US data in focus
Monday’s session will also feature the US ISM Manufacturing PMI for December, scheduled at 15:00 GMT. Analysts forecast a modest uptick to 48.3 from November’s 48.2, indicating continued contraction in business activity, though at a slightly moderated pace. A reading below the 50.0 threshold signals declining manufacturing activity.
Swiss franc events to watch
For the Swiss Franc, the spotlight will be on December’s Consumer Price Index, due Thursday, which will provide insight into whether the Swiss National Bank may move toward policy normalization. Earlier in the week, at 07:30 GMT on Monday, Switzerland’s Real Retail Sales for November will be released, with estimates pointing to 2.9% annualized growth versus October’s 2.7%, offering additional guidance on domestic demand trends.
Overall, USD/CHF remains supported by safe-haven flows into the US Dollar, while market participants weigh upcoming economic data from both the US and Switzerland for further directional cues.
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