USD/CHF rises as focus shifts to Swiss unemployment and Pfizer vaccine
- The USD/CHF pair rose slightly as traders reacted to news on Switzerland strong unemployment rate.
- The rate remained unchanged at 3.2% in October, better than the expected increase of 3.3%.
- The pair also reacted to news that Pfizer's Covid vaccine is 90% efficient.
The USD/CHF pair is up by 0.25% today as traders react to the latest Switzerland unemployment rate data, latest Covid vaccine news and the results of the American election. The pair is trading at 0.9000, which is a few pips above today’s low of 0.8995.
Switzerland unemployment rate steady
Switzerland’s economy has been battered by the Covid pandemic. In total, the virus has infected more than 212k people and killed more than 2,400 of them. Unfortunately, the country is also battling a second wave of the virus. On November 3, Swiss authorities confirmed more than 21k cases in the country, which pushed the government to implement new restrictions.
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However, the country’s economy has been relatively resilient. For example, it recorded a 8.2% contraction in the second quarter. While that was bad, it was better than the 30% decline in the United States and the 14.7% in the European Union.
This trend was also evidenced today when the State Secretariat for Economic Affairs (SECO) released the country’s unemployment rate data. The numbers showed that the unemployment rate remained unchanged at 3.2% in October. That happened as the number of unemployed increased by 558 to 149,118. The rate was better than the 3.3% increase that analysts polled by Reuters were expecting.
Youth unemployment rate dropped by 1,508 while that of people between 50 and 64 increased by 1,015. At the same time, the number of job seekers in the market increased by 3,315 while the number of vacancies fell by 4,054.
US election results watched
The USD/CHF is also reacting to the results of the American election. Over the weekend, former vice president, Joe Biden crossed the important 270 electoral college milestone. That made him become the next US president, defeating Donald Trump.
Today, the market is attempting to digest the results and predict the outcome. First, investors believe that Biden will face an uphill challenge to pass major bills because Republicans are set to maintain their majority in the Senate.
Second, they believe that global risks will decrease since Biden will likely prioritise dialogue instead of threats.
Third, analysts expect tighter environmental and consumer protection regulations that will mostly affect energy and finance companies.
Finally, investors believe that Biden will have success renegotiating trade deals by eliminating Trump’s trade wars.
Elsewhere, the USD/CHF is reacting to news that Pfizer’s and BioNTech vaccine is more than 90% effective against the Covid virus.
USD/CHF technical outlook
The USD/CHF pair is trading at 0.9017. On the daily chart, this price is below the 25-day and 50-day exponential moving averages. It is also slightly above the important support at 0.900, where the pair has formed a double bottom pattern. Therefore, I suspect that the pair will start rising as key risks, including the US election and Covid ease. Get started in trading by checking out our comprehensive review of top forex and CFD brokers.