USDCHF retreats from a winning streak toward 0.8900

• USDCHF trades lower around 0.8910 after robust employment data from the US.
• The reduced jobless claims and the improved labor costs contributed to the strengthening of the US Dollar (USD).
• Investors’ confidence grows in a hawkish stance from the Fed due to a consistent stream of positive data.

USD/CHF trades lower around 0.8910 during the Asian session on Friday, retreating from the winning streak that began on Tuesday. The pair experienced upward support due to the robust jobs data from the United States (US) released on Thursday.

US Initial Jobless Claims as of September 1 reduced to the reading of 216K, falling short of the 234K expected and from the previous reading of 229K. While US Unit Labor Costs improved to 2.2% in the second quarter from 1.6% prior, which was expected to remain consistent.

The recent surge in the strength of the US Dollar (USD) appears to be driven by investors' growing confidence in a more hawkish stance from the US Federal Reserve (Fed). This optimism stems from the consistent stream of positive data regarding the state of the US economy.

Market participants seem to factor in a 25 basis point (bps) interest rate hike during its November and December meetings. Along with the odds of maintaining interest rates at a higher level for an extended period.

Investor confidence continues to be restrained due to ongoing concerns about the worsening economic situation in China and the persistent trade tensions between China and the United States (US). These risks related to China's economic condition and trade dynamics could appeal to the traditional safe-haven Swiss Franc (CHF).

When there are no significant economic releases that could potentially impact the market, neither from the United States nor Switzerland, traders will likely observe the upcoming multiple speeches from Fed members.