The US dollar strengthened across all major currency pairs after the US released their labor market figures for the month. The unemployment rate unexpectedly declined to 3.5%, just 0.1% below the expert's consensus and much to the benefit of the USD. Non-Farm Payrolls data came out much better than expected, doubling what analysts anticipated with a 528K. Good news for the labor market means good news for the USD, and the USDX climbed more than 1%.
The US and Switzerland will release several high-impacting economic news releases next week, and we expect USDCHF to experience increased volatility with these.
On Monday, Switzerland will report their Unemployment Rate for July; the experts estimate the rate to rise from 2% to 2.1%. Additionally, the US will also release their CPI and Core Inflation Rate on Wednesday; the consensus is that the reports will result in slight increases to 296.58 and 6.1%, respectively.
The general trend for USDCHF continues to be downwards as the price trades below the short and long-term moving averages; however, the pair found strong support close to the lower Bollinger band, which, combined with fundamental economic indicators data, pushed the USD up.
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