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.
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