USD/CHF surges to 6-week highs post-NFP data

The USD/CHF pair gained more than 50 pips in a matter of minutes after the NFP report published by the U.S. Bureau of Labor Statistics came in stronger than the market expectations. As of writing, the pair is trading at its highest level since late June at 0.9743, up 0.58%, on the day.

Today's data from the U.S. showed that the total nonfarm employment increased by 209,000 in July, beating the market consensus of 183,000. Moreover, average hourly earnings, which is seen as a leading indicator of wage inflation, rose by 0.3% and 2.6% on a monthly and yearly basis respectively. After the data, the greenback finally found the demand that it has been looking for and the DXY surged above the 93 handle for the first time in August. At the moment, the index was at 93.06, up 0.4% on the day.

• US: Total nonfarm payroll employment increased by 209,000 in July

In the meantime, solid data from the U.S. gave a boost to the major equity indexes in the U.S. as well, keeping the risk appetite alive in the session. The pair could extend its gains in the remainder of the week as the macro calendar won't be offering any other data that could impact the price action.

Technical outlook

The pair could face the initial hurdle at 0.9765 (Jun. 20 high) ahead of 0.9810 (May 30 high) and 0.9850 (Mar 17 high). On the flip side, supports could be seen at 0.9670 (daily low), 0.9600 (psychological level/20-DMA) and 0.9490 (Jul. 27 low).