Forex Pros – The U.S. dollar was lower against the Swiss franc in quiet trade on Monday, erasing gains from last week after better-than-expected U.S. jobs data gave the greenback a boost
USD/CHF hit 0.8733 during European morning trade, the daily low; the pair subsequently consolidated at 0.8742, shedding 0.56%.
The pair was likely to find support at 0.8554, Friday’s low and a record low and resistance at 0.8852, the high of April 26.
Data on Friday showed that U.S. nonfarm payrolls rose by 244,000 in April, far outstripping the expected 185,000 forecast gain as the private sector posted the strongest employment gain in five years.
But with the Federal Reserve seen as unlikely to raise interest rates for some time to come there is room for the franc to rise further.
The Swiss franc has risen to a series of record highs against the dollar in recent months, as favorable Swiss economic conditions have added to expectations for rate hikes by the Swiss National Bank in the coming months.
Meanwhile, the Swissie was down against the euro, with EUR/CHF climbing 0.30% to hit 1.2622.
Earlier Monday, data showed that investor confidence in the euro zone unexpectedly declined this month.
ForexPros.com
