The USD/CHF pair extends its winning streak for a third consecutive session on Wednesday, trading near 0.8050 as global risk aversion lifts demand for the US dollar. A surge in long-term bond yields across major economies has intensified safe-haven flows, helping the greenback outperform against the Swiss franc.
At the time of writing, the US Dollar Index (DXY) holds steady around 98.50, maintaining Tuesday’s gains. Meanwhile, equity markets remain under pressure, with Dow Jones futures extending overnight losses—reflecting a broader decline in investor risk appetite.
US labor data in focus as Fed rate cut bets linger
Investors are now turning their attention to the US JOLTS Job Openings report for July, due at 14:00 GMT. Markets expect a print of 7.4 million, broadly in line with the prior reading of 7.44 million. The data will offer fresh insight into labor market conditions ahead of Friday’s Nonfarm Payrolls (NFP) release, which is widely seen as the key catalyst for near-term dollar direction.
Recent commentary from Federal Reserve officials has leaned dovish, with several policymakers citing softening employment trends as justification for potential rate cuts. Traders will be watching closely to see whether upcoming data reinforces that narrative.
Swiss inflation data eyed as SNB weighs policy options
In Switzerland, investors await the August Consumer Price Index (CPI) report, scheduled for release on Thursday. Annual inflation is expected to rise by 0.2%, while monthly figures are projected to remain flat. The subdued inflation outlook could prompt the Swiss National Bank (SNB) to consider further easing measures, including a return to negative interest rates, at its upcoming policy meeting.
With diverging monetary policy paths and heightened global uncertainty, USD/CHF remains supported by safe-haven flows and macroeconomic divergence. A sustained move above 0.8050 could open the door to further upside, particularly if US data continues to surprise to the upside.
