USD/CHF drops to lowest since early November post-NFP

The USD/CHF pair fell to its lowest level since the U.S. election day at 0.9654 in the wake of dismal nonfarm payroll report. As of writing, the pair is trading at 0.9670, down 0.45% on the day.

In a matter of minutes, the pair lost more than 50 pips as the total nonfarm employment in the U.S. increased by 138,000 in May, missing the market consensus of 185,000. Furthermore, April figure reading was revised down to 174,000 from 2111,000. The US Dollar Index refreshed its lowest level since November 9 at 96.66 and is now at 96.80, losing 0.36%.

• US Dollar slumps to fresh 2017 lows post-NFP

However, despite the weak rise in nonfarm numbers, the unemployment rate eased to 4.3% in May from 4.4% in April, and the increase in average hourly earnings met the expectations with 0.2%. Further details of the report showed that the number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was little changed at 5.2 million in May. All these underlying details suggest that the labor market is still in good shape regardless of today's data.

• US: Total nonfarm payroll employment increased by 138,000 in May

Philly Fed President Harker's speech later in the session will be the next catalyst for the pair. 

Technical outlook

0.9640 (Sept. 29 2016 low) could be the initial support for the pair ahead of 0.9550 (Nov. 9 trough) and 0.9500 (psychological level). On the upside, 0.9715 (daily high) could be seen as the first technical resistance followed by 0.9740 (May 30 high) and 0.9800 (psychological level/Fibo 23.6% retracement of May 11-22 drop).