Swiss Franc Climbs As Recession Fears Weigh
(RTTNews) - The Swiss franc strengthened against its major counterparts during the European session on Thursday, as disappointing U.S. economic data stoked worries about a recession.
U.S. private employers hired far fewer workers than expected in March and growth in the country's service sector activity slowed by much more than expected in the month, adding to the gloom surrounding the economic outlook.
Markets are pricing in a 58.2 percent chance that the U.S. Federal Reserve will hold interest rates steady at its next policy meeting in May.
Federal Reserve Bank of Cleveland President Loretta Mester said that policymakers should move their benchmark rate above 5% this year and hold it at restrictive levels for some time to quell inflation.
Traders now look ahead to the release of the closely watched US monthly jobs report for further cues on rate outlook.
The franc was up against the euro, at nearly a 2-week high of 0.9851. The currency is seen finding resistance around the level.
The franc rose to 145.31 against the yen, from an early 1-week low of 144.26. If the franc rises further, 148.00 is possibly seen as its next resistance level.
The franc edged up to 0.9036 against the greenback and 1.1259 against the pound, off its early lows of 0.9075 and 1.1305, respectively. The franc may find resistance around 0.89 against the greenback and 1.11 against the pound.
Looking ahead, U.S. weekly jobless claims for the week ended April 1 and Canada jobs data and Ivey PMI for March are due in the New York session.
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