Ella 
During the Asian session on Monday, USD/CHF almost recovered its intraday losses and was trading around 0.9100. The pair is under downward pressure due to the Israeli-Palestinian military conflict. In addition, US non-farm payrolls data released on Friday also failed to support USD/CHF.
September’s jobs report showed a significant gain of 336,000 jobs, beating market expectations of 170,000 jobs. August’s revised figure was 227,000. However, U.S. average hourly earnings (monthly rate) remained steady at 0.2% in September, missing expectations of 0.3%. On an annual basis, the report showed a decline of 4.2%, missing the consensus figure of 4.3%.
Markets are paying close attention to the ongoing military conflict between Hamas and Israel in the Middle East. The concern is that the conflict could intensify and expand to other parts of the region, creating geopolitical uncertainty and possible consequences for global markets.
Escalating violence has the potential to prompt investors to seek traditional safe-haven assets, with the Swiss franc (CHF) being an obvious example. During periods of heightened geopolitical uncertainty, demand for safe-haven assets tends to increase, and the Swiss franc is often viewed as a safe-haven asset in such situations.
The U.S. dollar index (DXY) rebounded after three days of losses, driven by a rise in U.S. Treasury yields. At the time of writing, spot is trading around 106.30.
U.S. Treasury yields rebounded on expectations that the Federal Reserve (Fed) will keep interest rates higher for an extended period. As of press time, the 10-year U.S. Treasury bond yield once again stood at 4.80%, close to the peak since 2007.
Investors are expected to pay close attention to the upcoming International Monetary Fund (IMF) meeting, which will discuss strategies to stabilize international exchange rates and promote development.
In addition, the US core producer price index later this week will also be closely watched, as it plays a pivotal role in assessing domestic inflation trends and economic conditions in the United States.
