- USD/CHF demonstrates strength around 0.8050 amid sour market sentiment.
- Soaring long-term bond yields across the globe have increased safe-haven demand for the US Dollar.
- Investors await the US JOLTS Job Openings and Swiss inflation data.
The USD/CHF pair extends its winning streak for the third trading day on Wednesday. The Swiss Franc pair rises to near 0.8050 as the safe-haven demand of the US Dollar (USD) has increased, following a significant surge in long-dated bond yields across the globe.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, holds onto Tuesday’s gains around 98.50.
Surging long-term bond yields have dampened demand for risky assets. Dow Jones futures extend losses in the overnight session, exhibiting a decline in investors’ risk appetite.
Meanwhile, investors await the US JOLTS Job Openings data for July, which will be published at 14:00 GMT. US employers are expected to have posted fresh 7.4 million jobs, almost in line with the prior reading of 7.44 million.
This week, the major trigger for the US Dollar will be Nonfarm Payrolls (NFP) data for August, which will be released on Friday. Investors will closely monitor the employment data to get cues about the current status of the labor market. Lately, Federal Reserve (Fed) officials have argued in favor of interest rate cuts, citing downside employment risks.
In the Swiss region, investors await Consumer Price Index (CPI) data for August, which is scheduled for Thursday. The CPI report is expected to show that inflation grew steadily by 0.2% on year. On a monthly basis, the inflation growth is anticipated to have remained flat again. Swiss National Bank (SNB) officials could discuss in the policy meeting later this month on pushing interest rates into the negative territory to prompt inflation growth.
