USD/CHF remains below 0.9150 ahead of NFP data

• USD/CHF edges higher on Friday during the initial  Asian trading hours.
• Lower US Treasury yields undermine the demand for the US dollar.
• US Dollar Index stays pressurized below 92.50, remains pressurized since the beginning of the week.

USD/CHF edges higher in the Asian trading hours on Friday. After testing the high above 0.9150  in the previous session, the pair traded in a very close trade band in today’s session.

At the time of writing, USD/CHF is trading at 0.9144, up 0.04% for the day.

The US Treasury yields trade lower at 1.28% with 0.68% losses. The US Dollar Index (DXY) moves in tandem with the benchmark 10-year yields movement and trades below 92.50, which capped the gains for USD/CHF.

The Initial Jobless Claims fell to the pandemic low in the week ending August 28th, its lowest level since March 2020. The reading came at 340K, below the market consensus of 345K. Furthermore, US companies announced 15,723 job cuts in August, the lowest since June 1997. However, the data failed to fuel the rally in the USD.

On the other hand, the Swiss Franc picked the momentum on broad-based USD weakness, despite the mixed economic data.

It is worth noting that S&P 500 Futures were trading at 4,536, up 0.28% for the day.

The Retail sales in Switzerland fell 2.6% on yearly basis in July, the first annual decline in the last five months, whereas the economy expanded 1.8% on a quarterly basis in June, below the market expectations of 2%.

The inflation rate jumped to 0.9% in August from 0.7% in the previous month, above the market expectations of 0.8%.

As for now, traders are waiting for the US Nonfarm Payrolls and  Unemployment data to gauge the market sentiment.

USD/CHF additional levels