Profit-taking and position squaring ahead of Friday’s U.S. Non-Farm Payrolls Report helped form a daily closing price reversal bottom in the USD CHF on Thursday.
This could be something minor or it could be the start of an overdue correction. It all depends on how traders read Friday’s U.S. employment report.
Traders have been driving down the Dollar/Swiss on speculation the U.S. Federal Reserve will implement additional quantitative easing measures as early as next month. Traders have been positioning themselves for the move by the Fed, but are uncertain as to how big the asset-buyback will be.