USD/CHF trades near parity in NFP's aftermath

• The Non-Farm Payroll came below expectations at 164K versus 192K in April while wage’s growth y/y also came below estimates at 2.6% vs. 2.7% expected.
• The USD/CHF is coiling around the parity level as the USD bull trend of the last weeks goes on.

The USD/CHF is trading at around 1.0000 up 0.26% on Friday as the European forex session came to a close. 

The USD/CHF bull trend is mainly driven by USD strength. The prospects of the Federal Reserve Bank to hike three times in 2018 is pushing the greenback and Treasury yields higher. 

Earlier in the North American session, the Non-Farm Payroll report for April came below estimates at 164K versus 192K forecast. The wages (average hourly earnings) as well came below forecast at 2.6% year-on-year against 2.7% expected. The unemployment rate fell to 3.9% which was the lowest since December 2000. The swissy initially spike down on the news and then spiked above the parity level. 

Although the NFP came below expectations, analysts said that the recent NFP shouldn’t change market expectations for the Fed’s monetary policy. Wage's growth is set to go higher in the near future which should be the catalyst for a more aggressive stance at the Fed and push the central bank to raise interest rates to curb inflation.

USD/CHF daily chart 

The trend is bullish and the key psychological resistance is the 1.0000, parity level. After which bulls will set their eyes on the 1.0038 swing high and 1.0345 cyclical high. Support is seen at the 0.9900 demand level and 0.9800 figure.