- USD/CHF prints mild daily gains on the first trading day of the week.
- US Dollar pares initial gains and trades near 94.10 with losses.
- The Swiss franc gains ground on risk-off mood.
The USD/CHF pair edges higher on Monday in the initial Asian session. The pair fell from the high above 0.9300 on Friday following the disappointing NFP data. At the time of writing, USD/CHF is trading at 0.9275 up 0.05% for the day.
The depreciative move in the greenback keeps the gains limited in USD/CHF. The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, holds near 94.11 with 0.11% losses. Investors digested the dismal Nonfarm Payrolls data. The US economy has added only 194K jobs in September, much below the expectations of 488K.
In addition to that, China profounds the idea of cancellation of tariffs and sanctions over the virtual talks between US Trade Representative Kathrine Tai and China’s Vice Premier Liu He. Furthermore, the risk sentiment was dampened following the US Senate Republican leader Mitch McConnell in a letter to US President Joe Biden asked that he would not aid Democrats again in raising the debt limit. It is worth noting that, S&P 500 Futures is trading at 4,358.50, down 0.54%.
As for now, in the absence of any major fundamental economic release, the USD direction would influence traders decisions.