Swiss Franc: Weakening Against US Dollar After Nonfarm Payrolls

• The Swiss Franc is weakening against the United States Dollar on Friday after the release of the United States Nonfarm Payrolls report reveals the United States created a higher-than-expected number of jobs in November, indicating a strong labor market.
• 199K new positions were filled, according to the United States Bureau of Labor Statistics report when a figure of 180K had been expected by economists.
• The report also showed that the United States Unemployment Rate fell to 3.7% in November, from 3.9% in October. No change had been expected.
• Average Hourly Earnings came out at 0.4%, beating expectations of 0.3% and suggesting wage inflation pressures may be building. Hours Worked also increased, suggesting more full-time positions filled.
• The higher wage data and stronger employment metrics in general indicate the United States economy is healthier than thought and that fresh inflationary pressures may yet emerge.
• The data could make the Federal Reserve keep interest rates higher for longer and reconsider before cutting interest rates.
• Higher-for-longer interest rates will benefit the United States Dollar since they are a magnet for capital inflows.
• The next big release for the United States Dollar is the preliminary Michigan Consumer Sentiment Index out at 15:00 GMT, which is estimated to show an increase to 62 from 61.3 in December.

USD/CHF– the number of Swiss Francs that one United States Dollar can buy– is trading higher on Friday after the release of Nonfarm Payrolls.

The pair is rising after having completed a Measured Move price pattern during October and November. Measured Moves are 3 wave patterns that resemble large zig-zags. The first and third waves are usually of a similar length. Wave C completed after achieving the same length as A. This further reinforces the bullish reversal since the December 4 lows.

United States Dollar vs Swiss Franc: Daily Chart

The MACD has completed a bullish cross (circled) in negative space, adding more evidence, signaling potentially more upside on the horizon.

The short-term trend is bullish, and more gains are possible. » …
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