The USD/CHF pair rose slightly as traders responded to news about the high unemployment rate in Switzerland.
The rate remained unchanged at 3.2% in October, better than the expected 3.3% increase.
The pair also responded to news that Pfizer’s Covid vaccine is 90% effective.
The USD/CHF rose 0.25% today as traders responded to the latest data on the unemployment rate in Switzerland, the latest news on the Covid vaccine, and the results of the U.S. election. The pair is trading at 0.9000, which is a few pips above today’s low of 0.8995.
USD/CHF rises today
Unemployment rate in Switzerland stable
The Swiss economy was hit by the Covid pandemic. In total, the virus has infected more than 212,000 people and killed more than 2,400 of them. Unfortunately the country is also struggling with a second wave of the virus. On November 3, the Swiss authorities confirmed more than 21,000 cases in the country, which prompted the government to introduce new restrictions.
However, the country’s economy has proven to be relatively resilient. For example, in the second quarter it recorded a decline of 8.2%. This was bad, but better than the decline of 30% in the United States and 14.7% in the European Union.
This trend was also evident today when the State Secretariat for Economic Affairs (SECO) published data on the country’s unemployment rate. The figures showed that the unemployment rate in October was unchanged at 3.2%. This occurred when the number of unemployed rose by 558 to 149,118. The rate was better than the 3.3% increase that the analysts surveyed by Reuters had expected.
The youth unemployment rate fell by 1,508, while that of people between 50 and 64 rose 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 observed
The USD/CHF is also reacting to the results of the American elections. Over the weekend, former Vice President Joe Biden passed the important milestone of 270 electoral colleges. With this he became the next US president and defeated Donald Trump.
Today the market is trying to digest the results and predict the outcome. First, investors believe that Biden will face a difficult challenge to pass important legislation as Republicans will retain their majority in the Senate.
Second, they believe global risks will decrease as Biden is likely to prioritize dialogue over threats.
Third, analysts expect stricter environmental and consumer protection regulations, which will affect energy and financial companies in particular.
And finally, investors believe Biden will succeed in renegotiating trade agreements by abolishing Trump’s trade wars.
Elsewhere, the USD/CHF is reacting to news that Pfizer and BioNTech’s vaccine is more than 90% effective against the Covid virus.
UPDATE: We are proud to announce, together with @BioNTech_Group, that our mRNA-based #vaccine candidate has shown first signs of efficacy against #COVID19 in an interim analysis of participants without prior evidence of SARS CoV-2 infection – Pfizer Inc. (@pfizer) November 9, 2020
Technical Outlook USD/CHF
Technical Table USD/CHF
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 key support level of 0.900, where the pair has formed a double bottom pattern. As such, I suspect that the pair will begin to rise as the main risks, including the US elections and the easing of the Covid phenomenon, are likely to continue. Start trading by viewing our comprehensive overview of the leading Forex and CFD brokers.