FXStreet reported that USD/CHF was higher early Thursday, before U.S. claims data and one day ahead of the October employment report, as traders awaited two labor-market indicators.
At 6:59 a.m. ET (11:59 UTC), FXStreet quoted USD/CHF, the dollar-franc exchange rate, at 0.8176, up 0.10% on the day after an intraday low of 0.8135. The outlet attributed the rebound to signs the dollar was stabilizing after volatility surrounding the U.S. midterm elections.
At 8:30 a.m. ET (13:30 UTC), the U.S. Department of Labor reported 189,000 seasonally adjusted initial claims for the week ended Oct. 31, down 6,000 from the previous week’s revised 195,000. The four-week average fell by 2,250 to 194,750.
The Swiss National Bank (SNB) kept its policy rate at 0% on Sept. 24, while the Federal Reserve’s target range was 3.75% to 4.00%, effective Oct. 29. In a Nov. 5 speech, SNB Governing Board Chairman Martin Schlegel said, “Investors trade off the security of Swiss assets against the higher yield elsewhere.”
An Oct. 22 summary of the SNB’s September assessment said the franc had depreciated around 3% in trade-weighted terms since the June assessment. It linked the decline to wider interest-rate gaps and said low franc volatility had made borrowing the currency more attractive for carry trades. The summary also said safe-haven demand for the franc remained limited. EconoTimes previously covered the SNB’s explanation of the franc’s decline.
Schlegel said Switzerland’s stability lowers borrowing costs for companies, households and the government. He recalled that the franc rose more than 40% in nominal effective terms between summer 2007 and summer 2011; in September 2011, the SNB set a minimum exchange rate against the euro.
The Bureau of Labor Statistics (BLS) scheduled its October Employment Situation report, which includes nonfarm payrolls, for Friday, Nov. 6, at 8:30 a.m. ET (13:30 UTC).
