USD/CHF Should Continue to Recover after the Strong NFP

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USD/CHF Should Continue to Recover after the Strong NFP

Today’s strong US NFP jobs report is giving the USD a boost.

The jobs data was decent, showing 250K jobs added in January, but the more impressive thing is that the labor market has been strong in the last 3 months, ending 2014 on a good note. We also had improvements in the participation rate and average hourly earnings.

This gave the USD strength across the board. For the USD/CHF it is helping it push towards a recent consolidation resistance around 0.9344. Remember that USD/CHF fell sharply after the SNB announced that it would no longer keep the eur-chf peg with a floor at 1.20. That displacement is now being corrected.

Indeed, the monetary policy stance of the FOMC is much more bullish than the SNB, which recently cut the libor rate to a negative range. Therefore, today’s bullish reaction should help nudge the pair back toward the 1.00, parity level.

Previous Post by Author: EUR/USD Continuing Downtrend on the Back of a Strong NFP Report

 

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.