Anna 
During the European session on Friday, USD/CHF hovered around 0.9060, reflecting negative sentiment following the weak US labor data released on Thursday. This data has sparked discussions about the Federal Reserve (Fed) potentially adopting a less hawkish stance on monetary policy, resulting in a decline in US Treasury yields and weakening of the US Dollar (USD).
The US Bureau of Labor Statistics (BLS) reported that the number of individuals filing for unemployment benefits surpassed expectations. Initial Jobless Claims for the week ending May 3 rose to 231,000, exceeding estimates of 210,000 and marking an increase from the previous week’s reading of 209,000.
The US Dollar Index (DXY), which measures the USD against six major currencies, hovered around 105.20. Meanwhile, 2-year and 10-year US Treasury yields stood at 4.81% and 4.44%, respectively, by the press time.
On the Swiss front, banks remained closed on Friday due to the Ascension Day holiday. The yield on the 10-year Swiss government bond dropped below the 0.7% threshold, nearing a new monthly low, in line with the global decline in bond yields. Lower yields have made Swiss assets less attractive to foreign investors, leading to decreased demand for the Swiss Franc (CHF).
Earlier this week, the Swiss National Bank’s (SNB) foreign exchange reserves rose to CHF 720 billion in April from CHF 716 billion in the previous month. This marked the fifth consecutive increase since reaching a near seven-year low of CHF 642 billion in November. The SNB has shifted its focus away from intentionally bolstering the Swiss Franc (CHF), aligning with efforts to combat inflation.
According to the State Secretariat for Economic Affairs, the seasonally adjusted Swiss Unemployment Rate decreased to 2.3% month-on-month in April from 2.4% in March, representing the lowest level in four months.
