USD Falls Against CHF as Surprise Jobs Data Weighs on Greenback

The US Dollar (USD) weakened against the Swiss Franc (CHF) after a surprise decline in US payrolls. The US Nonfarm Payrolls report showed that the economy lost 23,000 jobs in July, contrary to economists' expectations of an increase of 80,000.

The unemployment rate fell to 4.1% from 4.2%, but the disappointing jobs data weighed on the Greenback. The US Dollar Index (DXY), which tracks the value of the USD against six major currencies, traded around 99.60, down nearly 0.33% on the day.

The probability of a Federal Reserve rate hike at the September meeting fell to around 42% from 54% immediately before the release, according to the CME FedWatch Tool. Analysts at OCBC noted that the Swiss Franc remains under pressure due to carry trade funding demand and the SNB's zero-rate policy.