USD/CHF bounces off 13-day-low as market consolidates ahead of US NFP

• USD/CHF snaps two-day downtrend as buyers prepare for US jobs report.
• Cautious mood, rebound in yields allow bears to take a breather amid sluggish session.
• US NFP could recall pair bears on downbeat forecasts, dovish Fed outlook.

USD/CHF picks up bids to pare recent losses around the lowest levels in a fortnight during early Friday. That said, the Swiss Franc (CHF) pair rebounds to 0.9385 by the press time.

The quote’s latest consolidation could be linked to the anxiety ahead of the key US employment data, as well as recent comments from International Monetary Fund (IMF) Managing Director Kristalina Georgieva.

The cautious mood before the US Nonfarm Payrolls (NFP) gained extra strength after New York Fed’s John Williams stated that the Fed has a ways to go with rate rises.

On the other hand, IMF’s Georgieva said that recession risks are rising for many countries, the outlook for global growth is exceptionally uncertain and dominated by risks.

Also likely to have probed the USD/CHF bears could be the fears surrounding the slowdown in the Initial Public Offering (IPO) markets.

While portraying the mood, the S&P 500 Futures drop 0.30% intraday to 4,070 whereas the US 10-year Treasury yields printed a corrective bounce off the 10-week low to 3.54% by the press time.

However, the USD/CHF bears remain hopeful as the majority of the Fed policymakers, including Chairman Jerome Powell advocated for easy rate hikes. On the same line were the comments from US Treasury Secretary Janet Yellen. Furthermore, mostly downbeat United States data also weigh on USD/CHF prices.

It should be noted that the softer economics from Switzerland also challenged the USD/CHF bears of late. Swiss Real Retail Sales dropped by 2.5% YoY in October versus anticipated growth of 3.3% and 2.5% (revised) prior. Additionally, the nation’s Consumer Price Index (CPI) matched 3.0% YoY forecasts and prior while missing on MoM to 0.0% versus 0.1% expected and previous readings.

To sum up, USD/CHF portrays the pre-data correction and is likely to decline further after the US statistics. Forecasts suggest that the headlines Nonfarm Payrolls (NFP) is likely to ease with a 200K print versus 261K prior while the Unemployment Rate could remain unchanged at 3.7%.

Technical analysis

Despite the latest rebound, the USD/CHF bears remain hopeful of breaking the previous monthly low of 0.9355 unless the quote stays firmer beyond the support-turned-resistance line from November 15, close to 0.9415 by the press time.