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Forex - USD/CHF hits fresh record low after poor U.S. payrolls data

Published 06/01/2011, 08:35 AM
USD/JPY
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USD/CHF
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Investing.com – The U.S. dollar extended losses against the Swiss franc on Wednesday, tumbling to a fresh record low after data showed that U.S. private sector employment growth slowed sharply in May.

USD/CHF hit 0.8429 during European afternoon trade, the pair’s all-time low; the pair subsequently consolidated at 0.8432, tumbling 1.24%.

The pair was likely to find short-term support at 0.8350 and resistance at 0.8662, the high of the same day.

Payroll processing firm ADP said U.S. non-farm payrolls rose just 38K in May, on a seasonally adjusted basis, after increasing by a downwardly revised 177K the previous month. Analysts had expected non-farm payrolls to rise by 178K last month.

The report said the services sector added 48K jobs, marking 17 consecutive months of employment gains while employment in the goods-producing sector fell 10K, following six months of increases. Manufacturing employment fell 9K in May, following seven consecutive monthly gains.

The U.S. dollar was also sharply lower against the yen, with USD/JPY dropping 0.79% to hit 80.86.

Earlier Wednesday, the Swiss franc gained broadly after official data showed that Swiss retail sales rose sharply in April while the country’s manufacturing sector picked up in May.

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