USD/CHF starts new week quiet around 0.9900
- USD/CHF pair recovered on Friday following upbeat NFP data.
- Major European equity indexes register small losses on Monday.
- US Dollar Index moves sideways above 97.50 mark.
Despite a 30-pip rebound fueled by the broad-based USD strength on Friday, the USD/CHF pair erased 100 pips for the week and is now staying flat on the day near 0.9900.
The data from the US on Friday revealed that Nonfarm Payrolls in November increased by 266,000 to bear the market expectation of 180,000 and helped the greenback outperform its rivals. The US Dollar Index, which posted losses for five straight days, added 0.3% on Friday to help the pair pull away from its lows.
Volatility to pick up later in the week
Nevertheless, investors seem to be refraining from taking large positions ahead of this week's key events that could potentially impact the market sentiment and the USD's valuation.
The US and China will try to finalize the phase-one of the trade deal before the planned tariff hike goes into effect on December 15th and the Federal Open Market Committee will announce the monetary policy decisions on Wednesday following the two-day meeting that will kick off on Tuesday.
Confirming the neutral mood on Monday, major European equity indexes are posting small daily losses while the S&P 500 futures remain flat on the day. Furthermore, the 10-year US Treasury bond yield is staying calm near last week's closing level of 1.81%.
Technical levels to watch for