During the early European trading hours, the USD/CHF pair maintained its position, hovering around 0.9060. The US Dollar (USD) received a boost from an upward correction, lending support to the pair. However, concerns linger over potential resistance for the Greenback amid investor optimism triggered by softer US labor data last Friday, reigniting speculation regarding potential interest rate cuts by the Federal Reserve (Fed) in 2024.
The US Dollar Index (DXY), reflecting the USD’s performance against a basket of six major currencies, is currently trading higher at approximately 105.20. Nevertheless, the ascent of the US Dollar is tempered by weaker US Treasury yields. At present, the yields on 2-year and 10-year US Treasury bonds stand at 4.80% and 4.45%, respectively.
On the Swiss front, the Unemployment Rate (MoM) for April stood at a non-seasonally adjusted 2.3%, marginally down from the previous reading of 2.4%. The number of unemployed individuals decreased by 1,636 compared to the prior month, totaling 106,957. Adjusted for seasonal factors, the jobless rate remained steady at 2.3% for April.
In recent developments, Swiss National Bank (SNB) Chairman Thomas Jordan addressed the exploration of optimal methods for digitally tokenizing financial assets to enhance payment security and efficiency. Speaking at an event in Basel on Monday, Jordan refrained from offering insights into economic and monetary policy during his remarks, as reported by Reuters.
