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The Swiss franc is strengthening against the dollar. Surprisingly, USD/CHF fell below 0.7500, reaching lows not seen since April 2024. It is now trading around 0.7472. A strong fall.
It seems that the market changed its mind. The September employment report was weak. Only 75,000 new jobs. Less than expected. Unemployment rose to 4.1%. Wages grew, but did not impress.
Traders were already betting on a rate cut. Now some are talking about 50 basis points in December. It may be premature.
The dollar weakened overall. The DXY fell to April 2024 lows. Treasury bonds also dropped. The 10-year at 3.80%, the 2-year at 3.20%. Levels not seen since March.
What's next? Thursday's CPI will be key. Inflation is still a risk; it's unclear how the Fed will react. A soft data point could put more pressure on the dollar. We'll see.