The USD/CHF currency pair settled above recent low of 0.7871, its weakest level since September 2011, in the wake of stronger-than-expected US jobs data.
Employers in all sectors of the US economy, excluding farming, added 110,000 job positions in June, while the unemployment rate dropped to 4.1%. The data reinforced the case for the Federal Reserve to leave interest rates on hold.
At the same time, US Congress passed the Trump administration’s tax-cut and spending bill, which brought forth fiscal concerns.
The legislation, which overcame its final hurdle in Congress on Thursday, made US President Trump’s 2017 cuts permanent, funded his immigration crackdown and added new 2024 campaign tax breaks.
According to the Congressional Budget Office, the bill is estimated to add $3.4 trillion to the US national debt over a decade.
Meanwhile, investors pared bets on further interest rate cuts by the Swiss National Bank, following the Swiss CPI data.
Consumer prices in Switzerland rose 0.1% year-on-year in June, after a 0.1% drop in the preceding month. The latest figure also defied market consensus of a 0.1% fall.
The Swiss National Bank lowered its policy rate by 25 basis points to 0% at its June meeting, which brought borrowing costs to their lowest level since August 2022.
The USD/CHF currency pair settled 0.09% lower at 0.7933 on Friday.
The major Forex pair lost 0.60% for the week.
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