USD/CHF steady ahead of US non-farm payrolls

US dollar showed little change against the Swiss franc on Friday, as market players remained cautious ahead of the crucial report to show the development in US labour market.

USD/CHF touched a session high at 0.9388 at 7:10 GMT, after which consolidation followed at 0.9377, up by 0.10% for the day. Support was expected in the zone 0.9340-0.9360, while resistance was to be encountered in the range 0.9410-0.9430.

Earlier on Friday it was reported that manufacturing activity in Switzerland rose for the fifth consecutive month in July, reaching a 26-month high. Schweizerischer Verband für Materialwirtschaft und Einkauf (SVME) Purchasing Managers Index climbed to 57.4 in July from 51.9 in June, remaining above the crucial level at 50.0, which separates contraction from expansion. Experts had expected that the index will show a lesser increase to 52.4. Julys reading was the highest since May 2011. The sub index of new orders was the main driving force behind the overall activity result, as it registered its largest increase in two years in July. Additionally, the index, gauging manufacturing output, also rose to its highest point for the past two years.

Meanwhile, market participants awaited the US non-farm payrolls report for indications on the development of US labor market, after yesterday it became clear that initial jobless claims fell by 19 000 to 326 000 during last week, which was the lowest number of claims since the beginning of 2008, considerably outstripping initial estimates that claims will reach 345 000. On Wednesday another report said that the private sector in the United States added 200 000 new job positions in the month of July, surpassing preliminary estimates of 180 000 jobs.

Elsewhere, the franc was almost without change against the euro, as EUR/CHF ticked down 0.02% to trade at 1.2373. GBP/CHF, on the other hand, advanced 0.24% for the day, trading at 1.4203.