• USD/CHF falls further to near 0.8400 as the US Dollar weakens ahead of the US NFP.
• Risk-averse market sentiment has improved the Swiss Franc’s safe-haven appeal.
• The Fed is widely anticipated to start reducing interest rates this month.

The USD/CHF pair falls to near the round-level support of 0.8400 in Friday’s European session. The losing streak of the Swiss Franc asset has extended for the fourth trading session amid sheer weakness in the US Dollar (USD). The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, refreshes its weekly low below 101.00 amid growing risks to the United States (US) labor market health.

Market sentiment remains risk-averse ahead of the US Nonfarm Payrolls (NFP) data for August, which will be published at 12:30 GMT. The Risk-averse profile has improved the safe-haven appeal of the Swiss Franc (CHF).

Investors keenly await the US NFP data as it will influence the likely size of the interest rate cut by the Federal Reserve (Fed) in its monetary policy meeting this month. Economists estimate that US employers hired 160K new workers in August, higher from 114K in July. In the same period, the Unemployment Rate is expected to have declined to 4.2% from the former release of 4.3%.

Meanwhile, the Swiss National Bank (SNB) is expected to cut interest rates again this month as inflationary pressures in the Swiss region continue to decline. Swiss annual Consumer Price Index (CPI) decelerated at a faster-than-expected pace to 1.1% from the estimates of 1.2% and the former release of 1.3%.