USD/CHF nears two-month lows at 0.7910 with US jobs in the spotlight

• The US Dollar drops against the Swiss Franc for the third consecutive day, approaching key support levels.
• Concerns about a sharp downward revision of US jobs are hammering the US Dollar.
• Further evidence of labour market deterioration might prompt the Fed to deliver a jumbo cut next week.
  

The US Dollar extends losses for the third consecutive day against the Swiss Franc on Tuesday. The market awaits the release of the benchmark revision of the US Nonfarm Payrolls data, which is expected to show a sharp deterioration of the US labour market.

The USD/CHF pair has depreciated about 0.2% so far today and reached intraday lows of 0.7920. A depressed Greenback is nearing the 23 July low, at 0.7910, the last hurdle before a key support level at 0.7872, the lowest levels since 2011.

The USD struggles ahead of the NFP's benchmark revision

The US Bureau of Labour Statistics will disclose the revision of US employment figures for the last 12 months to March, which is expected to show a net loss of up to 800,000 jobs in the period, according to market sources.

Such a revision would reveal that the labour market deteriorated beyond expectations in the period, adding pressure on the Federal Reserve to accelerate its monetary easing cycle. 

Last year's NFP benchmark revision showed an 818,000 net loss in employment, and the central bank cut interest rates by 50 basis points at their September 2024 meeting.

In the Swiss calendar, it highlights the SNB President Martin Schlegel's conference on Wednesday. The SNB chief is expected to reiterate last week's comments, playing down the possibility of cutting interest rates into negative levels, citing undesirable side effects for savers and pension funds.

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