The USD/CHF pair is trading cautiously with a focus on the upcoming US Nonfarm Payrolls (NFP) data. The US Dollar has been struggling as speculation grows that the Federal Reserve may cut interest rates starting from the September meeting. This has led to increased demand for risky assets, with S&P 500 futures posting gains in the Asian session.
Expectations for a Fed rate cut have been fueled by recent data showing a weakening US labor market. Reports such as the JOLTS Job Openings for April and ADP Employment Change for May have pointed towards a slowdown in job demand. Additionally, an increase in initial jobless claims suggests a potential easing in labor market strength.
On the other hand, the Swiss Franc has been performing relatively well against the US Dollar, supported by expectations of intervention by the Swiss National Bank to support the currency and maintain pressure on inflation. This move is aimed at boosting Swiss exports, which have benefited from a weaker Swiss Franc.
Overall, market participants will be closely watching the US NFP report for further insights into the health of the US labor market, while keeping an eye on potential interventions by the SNB in the currency markets.