USD/CHF rises as the Swiss Unemployment Rate increased to 2.9% MoM in May, from 2.8% prior.
The US Dollar may lose ground due to increased economic concerns following weaker US data.
President Trump took to Truth Social to ask Fed Chairman Jerome Powell to cut the policy rate.
USD/CHF recovers its recent losses of over 0.50% registered in the previous session, trading around 0.8200 during the European hours on Thursday. The seasonally adjusted Swiss Unemployment Rate rose to 2.9% month-over-month in May, indicating a lack of expansion within the Swiss labor market. The market expected the unemployment rate to remain consistent at April’s 2.8%.
The upside of the USD/CHF pair could be restrained as the US Dollar may face challenges, as rising tariff uncertainty could potentially dampen growth in the US economy. This scenario worsened after the weaker economic data was released in the United States (US).
Institute for Supply Management's (ISM) Services Purchasing Managers Index (PMI) declined to 49.9 in May, from 51.6 in April. This reading surprisingly came in weaker than the expected 52.0. Meanwhile, US ADP private sector employment rose 37,000 in May, against a 60,000 increase (revised from 62,000) recorded in April, far below the market expectation of 115,000.
US economic concerns worsened following the weaker economic data from the United States (US). Institute for Supply Management's (ISM) Services Purchasing Managers Index (PMI) declined to 49.9 in May, from 51.6 in April. This reading surprisingly came in weaker than the expected 52.0. Meanwhile, US ADP private sector employment rose 37,000 in May, against a 60,000 increase (revised from 62,000) recorded in April, far below the market expectation of 115,000.
US President Donald Trump posted on Truth Social on Wednesday, calling upon Federal Reserve (Fed) Chairman Jerome Powell to lower the policy rate. "ADP NUMBER OUT!!! “Too Late” Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES," Trump said.
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