USD/CHF extends weekly gains as bulls reclaim 0.8700

• USD/CHF records 0.80% gains in the week after buyers regain 0.8700.
• US labor market data remains soft, justifying market participants' rate cuts for 2024.
• Up next: Traders focus shifts to US Nonfarm Payrolls report.

USD/CHF prints decent gains of 0.12% in the day as the North American session begins, extending its weekly gains to 0.80% as buyers reclaim the 0.8700 figure. At the time of writing, the major is exchanging hands at 0.8764 after hitting a daily low of 0.8729.

The USD/CHF aims higher ahead of US NFP data

A busy economic calendar in the United States (US) keeps USD/CHF traders entertained. Firstly, the US Challenge Job Cuts revealed that US employers slashed 45.51K employees from the workforce, exceeding October figures, while the US Department of Labor revealed unemployment claims. Initial Jobless Claims for the week ending December 2 missed projections of 222K, rose by 220K but exceeded the previous week’s 219K.

All that said, there’s just one report linked to employment in the week. The US Nonfarm Payrolls on Friday is expected to show the US economy created 180K jobs in November, above October’s 150K, while the Unemployment Rate is estimated to stay around 3.9%.

Given the latest JOLTs and ADP figures suggested the labor market has cooled, if tomorrow’s employment report comes weaker than expected, it could be the last nail in the coffin for the US Federal Reserve (Fed), as investors seem convinced the Fed’s finished to tighten monetary conditions.

Fed Interest Rate Expectations

In the meantime, money market futures had priced 135 basis points of rate cuts by the Fed for the next year, which would likely begin in May, according to the Chicago Board of Trade (CBOT) data.

Aside from this, the Unemployment Rate in Switzerland hit 2.1%, exceeding October’s 2%, though it barely moved the needle. USD/CHF traders remain heavily focused on US Dollar dynamics.

USD/CHF Technical Levels