USD/CHF struggles to hold above 0.9440 in the face of a volatile US dollar, with Swiss employment in focus.

VOT Research Desk

In the Tokyo session, the USD/CHF pair broke over the immediate resistance level of 0.9940. As the USD Index (DXY) exhibits erratic fluctuations in the early trading, risk-sensitive currencies have noticed a slight selling interest.

It is too early to declare that the risk profile is shifting because the volatility in the US Dollar has not been supported by any fundamental catalyst.

Returns on US Treasury bonds have fallen further as investors do not expect the Federal Reserve to maintain its rate rise policy (Fed). The 10-year US Treasury yield has fallen below 3.67% and is projected to fall further.

Moving ahead, market players may see a tough session as investors adjust their extended overnight positions on Friday following a holiday on Thursday due to Thanksgiving Day.

On the Swiss Franc front, investors are anticipating the release of third-quarter employment data on Friday.

The economic statistics is expected to be higher at 5.331 million than the previous report of 5.316 million. Positive employment numbers would encourage the Swiss National Bank (SNB) to maintain its expansionary monetary policy.