Anna 
USD/CHF extended its gains in the second consecutive session as the U.S. dollar (USD) strengthened, driven by risk aversion due to weaker global growth expectations for the end of 2024. The U.S. dollar index (DXY) saw an uptick on the back of higher U.S. Treasury yields. Positive U.S. labor data on Thursday, including a significant increase in ADP employment changes and a decrease in initial jobless claims, supported the dollar, constraining losses. During Friday’s Asian session, USD/CHF traded around 0.8500.
U.S. employment data for December displayed a clear upward trend, contributing to the strengthening of the U.S. dollar. The Swiss franc (CHF) experienced limited losses, possibly due to interventions by the Swiss National Bank (SNB) in the foreign exchange market. Additionally, the improvement in the SVME Manufacturing Purchasing Managers’ Index (PMI) for December hinted at positive changes in manufacturing operating conditions, influencing CHF buying sentiment.
As traders eagerly await key data from Switzerland, including the consumer price index and real retail sales scheduled for Monday, these indicators will serve as crucial factors influencing market sentiment and guiding decisions on USD/CHF trading.
