13 Jan 2025

• USD/CHF traes in positive territory for the fifth consecutive day round 0.9170 in Monday’s early European session. 
• The stronger US December employment report supports the USD. 
• Trump policy risks and safe-haven flows could boost the CHF.
• The USD/CHF currency pair is gaining momentum, approaching 0.9170 in the early hours of the European session on Monday, supported by a stronger US Dollar (USD). The positive US employment report has reinforced the Federal Reserve's (Fed) measured approach, providing favorable conditions for the pair. Market participants are looking forward to the release of the US December Producer Price Index (PPI) data, scheduled for later on Tuesday, for additional direction.
• The Greenback continues to strengthen following a report indicating that the United States added more jobs than anticipated in December, reinforcing the belief that the Federal Reserve will pause its rate-cutting measures during the January policy meeting. The CME FedWatch tool suggests that financial markets foresee the Fed maintaining its benchmark overnight interest rate within the 4.25%-4.50% range at this upcoming meeting. Since initiating its easing cycle in September 2024, the US central bank has reduced its policy rate by 100 basis points (bps).
  
  In Switzerland, the economic uncertainties linked to the policies of President-elect Donald Trump's administration, coupled with ongoing geopolitical tensions in the Middle East, may enhance safe-haven flows, thereby benefiting the Swiss Franc (CHF) against the US Dollar. Israeli airstrikes have persisted across Gaza, affecting areas near Gaza City, Nuseirat, and Bureij. Additionally, two strikes were reported in the Houmin Valley in southern Lebanon, as per Lebanon’s National News Agency.