Anna 
In the European trading hours on Monday, the USD/CHF pair continued its upward trend for the second consecutive session, approaching the 0.9050 level. This surge can be attributed to several factors, including geopolitical developments and economic data releases.
One significant factor contributing to the rise in the USD/CHF pair is Israel’s decision to withdraw additional troops from Southern Gaza. This move, possibly influenced by growing international pressure, has helped ease tensions in the region. Additionally, the resumption of peace talks between Israel and Hamas in Egypt has further reduced concerns, thereby diminishing demand for the safe-haven Swiss Franc (CHF).
In economic news, the Swiss Unemployment Rate saw a month-on-month increase of 2.3% in March, slightly higher than the previous rise of 2.2%. Despite this uptick, the unemployment rate remained unchanged at 2.4% in March 2024, based on non-seasonally adjusted figures.
Meanwhile, the US Dollar Index (DXY) traded higher around 104.30, driven by a positive outcome in the Nonfarm Payrolls (NFP) report. The robust performance of the US labor market in March, surpassing expectations, has reinforced bullish sentiment for the US Dollar.
The NFP data revealed a significant increase of 303,000 jobs in March, exceeding expectations of 200,000. However, it’s worth noting that the previous month’s growth was revised downward from 275,000 to 270,000. Additionally, US Average Hourly Earnings rose by 0.3% month-over-month in March, meeting expectations. On an annual basis, there was a 4.1% increase, aligning with market consensus but slightly lower than the prior reading of 4.3%.
The overall market sentiment reflects optimism regarding the US Dollar’s strength, supported by encouraging economic data and geopolitical developments. As traders await the release of US Consumer Price Index data for March on Wednesday, further shifts in currency dynamics may be anticipated.
