USD/CHF oscillates around 0.9700 ahead of Swiss Jobless Rate and ADP Employment Change

• USD/CHF is juggling around 0.9700 as investors await employment data.
• The Swiss Unemployment data is seen as stable at 2.2%.
• Hawkish Fed minutes have supported the DXY and may display more upside further.

The USD/CHF pair is likely to remain in a consolidation as investors are awaiting the release of the Swiss jobless rate. The asset has turned sideways after failing to cross the critical hurdle of 0.9740. The major is attempting a balance in a tad wider range of 0.9690-0.9740 ahead.

A preliminary estimate for the Swiss Unemployment Rate on a monthly basis is 2.2%, similar to the former release. The Swiss National Bank (SNB) is expected to be delighted with the economic data as it will facilitate a rate hike decision by the central bank. It is worth noting that the SNB is on the path of elevating interest rates now. SNB Governor Thomas J. Jordan announced a rate hike by 50 basis points (bps) in its June monetary policy meeting.

Meanwhile, the US dollar index (DXY) is holding itself comfortably above 107.00. The DXY has turned sideways after the release of the hawkish Federal Open Market Committee (FOMC) minutes on Wednesday. Only one FOMC member was not in support of dictating a 75 bps rate hike. The guidance will also remain highly restrictive if price pressures persist for longer.

In today’s session, the release of the Automatic Data Processing (ADP) Employment Change will remain in focus. As per the market consensus, the job additions in the labor market may improve to 200k, higher than the prior print of 128k. However, the Initial Jobless Claims will remain almost flat at 230k, against the former release of 231k.