USD\/CHF remains steady around 0.7750 as weak US employment data is released. The pair lacks movement as the US Dollar struggles following mixed macroeconomic data.<\/p>\n
The ADP Employment Change report indicates US private sector jobs increased by 22,000, below the expected 48,000. This suggests a slowing US labour market, though annual wage growth is stable at 4.5%.<\/p>\n
The US Dollar Index remains unchanged as the Federal Reserve is expected to maintain interest rates between 3.50%-3.75%. Weaker employment data may influence future policy discussions.<\/p>\n
The Swiss Franc displays varied performance as focus remains on Swiss National Bank’s actions amid low inflation. SNB emphasises commitment to manage inflation risks.<\/p>\n
Attention shifts to upcoming US PMI data, which could affect USD\/CHF movement. Within major currencies, USD shows varied percentage changes, with the highest against the Japanese Yen at 0.58%. <\/p>\n
This information reflects the market situation and should be considered cautiously due to inherent risks in financial investments. Understanding market risks and the possible total loss of capital is essential for investors.<\/p>\n
With USD\/CHF trading in a tight range around 0.7750, implied volatility is likely compressed, making options relatively inexpensive. The disappointing US private payrolls data, showing only a 22,000 job increase against a 48,000 expectation, has introduced significant uncertainty. This makes it a good time to consider strategies that benefit from a potential breakout, as the market is currently pricing in complacency.<\/p>\n
We saw the official Non-Farm Payrolls for January, released last Friday, confirm this slowdown, coming in at just 95,000 and missing consensus forecasts. Despite this, core CPI inflation from late 2025 remains stubbornly above 3%, putting the Federal Reserve in a difficult position. This tension between a slowing labor market and persistent inflation suggests the current 3.50%-3.75% federal funds rate may not hold for long, creating potential for a sharp move.<\/p>\n
On the other side, the Swiss National Bank’s vigilance is being tested by its own data. Recent inflation figures for January 2026 showed a surprising uptick to 1.6% year-over-year, strengthening the SNB’s hawkish stance. We believe this reduces the likelihood of any rate cuts from the SNB in the first half of the year, providing underlying support for the franc.<\/p>\n
Looking back, we remember the sharp currency moves of 2023 when central bank policies began to diverge significantly after a period of lockstep hiking. The current setup, with a potentially wavering Fed and a firm SNB, echoes that environment. This suggests the current period of low volatility in USD\/CHF is temporary and a larger trend is likely to emerge in the coming weeks.<\/p>\n
Given the weak US employment picture and a resolute SNB, we see a growing downside risk for USD\/CHF. Traders should consider buying put options or establishing bearish put spreads to position for a potential break below the 0.7700 support level. The upcoming US ISM Services PMI data could be the catalyst that triggers this move, making it prudent to establish positions beforehand.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USD\/CHF steady near 0.7750 as weak US jobs data fuels market caution; Fed policy in focus.<\/p>\n","protected":false},"author":62,"featured_media":16963,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=40946"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40946\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16963"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}