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USD/CHF stays near flat as Swiss franc shrugs off bond turmoil
USD/CHF bounced from 0.8225 lows on Friday but remains capped below the prior support zone around 0.8320.
The Swiss franc steadied versus the US dollar on Monday, with USD/CHF retracing earlier losses and trading practically flat, FXStreet reported. The move came as bond market stress weighed on broader risk appetite, yet the franc showed little immediate reaction.
FXStreet said USD/CHF bounced from 0.8225 lows on Friday, but it stayed contained below a prior support area near 0.8320, which the outlet cited as keeping the immediate bearish setup intact.
The dollar trimmed losses early on Monday as the global bonds selloff deepened and boosted demand for safe-haven assets. FXStreet also pointed to US labor data, saying Nonfarm Payrolls grew below forecasts and the unemployment rate rose unexpectedly in September, which reduced expectations for an October Federal Reserve rate hike.
FXStreet attributed the CHF’s relative resilience to Switzerland’s fiscal position, noting Swiss public debt is about 19% of GDP versus roughly 127% in the US, 115% in France, and 250% in Japan. The outlet said this offset a monetary policy divergence between the Fed and the Swiss National Bank that had driven the CHF nearly 5% lower versus the dollar over the prior two months.