USDCHF Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | 0.4% | 36.3 Pips |  |
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| Week to-date | -1.16% | -106 Pips |  |
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| February | -0.52% | -47.4 Pips | |
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Upcoming key events (London Time)
Fri 01:30 PM USD Nonfarm Payroll Employment
What happened lately
The United States has reported a notable increase in its unit labor costs for the fourth quarter, with figures rising to 3% from the previous quarter’s 0.8%, as per the Bureau of Labor Statistics. This increase suggests that expenses related to employment, including wages and benefits, are growing, potentially indicating an inflationary trend. On the other hand, U.S. initial unemployment claims saw an increase to 219,000 in the week ending February 1st, up from the revised 208,000 in the prior week, according to the Department of Labor. This rise in jobless claims could imply some weakness in the labor market, possibly due to transitions or seasonal factors. Additionally, U.S. nonfarm business labor productivity showed a downturn, decreasing from 2.2% in Q3 to 1.2% in the flash estimate for Q4, potentially reflecting higher labor input compared to output efficiency.
These economic indicators from the U.S. can potentially impact the USDCHF forex pair. The rise in unit labor costs might reflect inflationary pressures, which could lead to expectations of Federal Reserve actions, possibly affecting the USD positively. However, the increase in unemployment claims and decrease in productivity might counteract this optimism by showcasing underlying weaknesses in the labor market and economic efficiency. On the trading front, the USDCHF saw a 0.4% increase to 0.90463 on Thursday, which might have been influenced by anticipations on the release of nonfarm payroll employment data. Should the upcoming report show stronger-than-expected labor figures, it could bolster the USD further against the Swiss Franc. Conversely, weaker data could lead to depreciation of the USD relative to CHF. The market will closely watch these developments to gauge the overall economic health and monetary policy direction of the U.S.
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What can we expect from USDCHF today?
USDCHF on Thursday rose 0.4% to 0.90463. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCHF looks bullish as the pair ended higher after Thursday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 0.90697 with break above could target R2 at 0.90932 or figure level area. While towards the downside, we are looking at daily low of 0.90074 as an important support. Break below this level could weaken the current bullish momentum. A break above 0.90620 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCHF is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 0.91243 |
| R2 | 0.90932 |
| R1 | 0.90697 |
| Daily Pivot | 0.90386 |
| S1 | 0.90151 |
| S2 | 0.8984 |
| S3 | 0.89605 |
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