USD/CHF Surges on Strong US Jobs Report, Rate Hike Expectations Jump

The US Dollar/CHF (USD/CHF) pair rose on Friday after strong US employment data was released, fueling expectations of a Federal Reserve interest rate hike. The pair jumped to 0.8126 immediately after the Nonfarm Payrolls release before giving back some gains.

US employers added 162,000 jobs in August, significantly exceeding expectations for a 56,000 increase. Previous figures were revised higher, with July payrolls now showing a 21,000 gain instead of the previously reported 23,000 decline.

The robust employment report initially sent the US Dollar and Treasury yields sharply higher. The Dollar Index (DXY) climbed to 99.39 before retreating toward 99.15, highlighting some hesitation among investors despite the strong labor-market report.