Swiss Franc trims losses despite higher Oil prices, lower Swiss employment

• USD/CHF retreats from 0.7900 highs to 0.7880 but maintains its immediate bullish trend intact.
• Swiss employment data revealed a slight decline in jobs in the first three months of 2026.
• The focus today is on April's US PCE Price Index figures.

The Swiss Franc (CHF) holds moderate losses against the US Dollar (USD) on Thursday, but it has retraced most of the earlier decline, despite higher Oil prices and uninspiring Swiss employment data. The USD/CHF pair trades right below 0.7880 after being rejected at the 0.7900 area during the Asian session, although it remains positive in the daily chart for the third consecutive day.

The Greenback is drawing support from the escalating tensions in Iran, which have pushed back hopes of a swift end to the war and the reopening of the Strait of Hormuz. The US military has launched the second attack in three days on Iran’s territory, while Tehran reported an attack on a US base in the Gulf region.

Beyond that, the US has issued new sanctions against Iran’s newly founded Persian Gulf Strait Authority, further complicating navigation in the Strait of Hormuz. Vessels sailing through Hormuz are supposed to report to these authorities, but doing so would breach US sanctions.

In Switzerland, data from Swiss Statistics revealed that the Employment Level eased to 5,537 million in the first three months of the year, from 5,544 million in the previous quarter. 

In the US, the focus today will be on the Personal Consumption Expenditures (PCE) Price Index data, due later in the day. The Federal Reserve’s (Fed) favourite inflation gauge is expected to confirm that price pressures kept rising in April, providing further reasons for hawks in the committee to support an interest rate hike. The risk is skewed to then upside for the US Dollar.