- USD/CHF flattens around 0.7750 while investors await the US data.
- US private employers are expected to have hired 48K fresh workers in January.
- SNB Chairman Schlegel remains concerned over the inflation outlook.
The USD/CHF pair trades in a tight range around 0.7750 during the late Asian trading session on Wednesday. The Swiss Franc pair consolidates as investors await the United States (US) ADP Employment Change and the ISM Services Purchasing Managers’ Index (PMI) data for January, which will be published during the North American session.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally lower to near 97.30.
Investors will pay close attention to the US data to get fresh cues on the Federal Reserve’s (Fed) monetary policy outlook. The US private sector is expected to have created 48K fresh jobs, slightly higher than 41K in December. The ISM Services PMI is estimated to have dropped to 53.5 from the prior reading of 54.4, indicating that the service sector activity continued to advance but at a moderate pace.
According to the CME FedWatch tool, traders seem confident that the Fed will leave interest rates unchanged in the range of 3.50%-3.75% in the March policy meeting.
Meanwhile, the Swiss Franc (CHF) shows a mixed performance while investors seek fresh cues on the Swiss National Bank’s (SNB) monetary policy outlook. The SNB is likely to hold interest rates at 0% in the near term as they remain concerned over soft inflationary pressures. On Monday, SNB Chairman Martin Schelegl said, “My greatest concern is of course inflation and price stability, and we [SNB] do everything we can to ensure that,” Reuters reported.
