EURCHF Exchange Rate

Euro area jobless rate remained unchanged at a record low for the fifth month in a row in March and the unemployment decreased, while a tight labor market could urge the European Central Bank to remain cautious even as policymakers gear up for an interest rate cut in June. The seasonally adjusted unemployment rate was 6.5 percent in March, which is the same level as in the previous four months.

Unemployment figures from the euro area and Spain, and the purchasing managers' survey results for the services sector from the U.K. are the highlights on the economics front on Friday. Eurozone jobless rate is expected to remain steady at 6.5 percent in March. Eurostat is set to release the data at 05:00 am ET.

The euro dropped against some of major counterparts in the New York session on Thursday.

The Swiss franc strengthened against other major currencies in the European session on Thursday, after data showed that Switzerland's consumer price inflation increased more-than-expected in April to the highest level in four months.

Expert market comment made by senior analyst Alex Kuptsikevich of the FxPro Analyst Team: CHF renewed its decline on weak inflation

Last Thursday marked the conclusion of February, closing with a surge in equities. The market attributed these movements to the in-line Personal Consumption Expenditures (PCE) print, which alleviated concerns of another spike in inflation.

The CHF's Mardi Gras celebrations are devoid of any late indulgence, as its February losses have deepened due to the unexpected downturn in the Swiss CPI data. Credit Agricole longstanding warning about the CHF's robust start to 2024, coupled with the SNB's altered stance on FX interventions in December, has manifested in the currency's struggles.

The EUR/USD pair has bounced back from its recent low of 1.0450, but it could struggle to find enough buyers as it approaches the 1.0530/1.0550 range. The US dollar remains an unattractive sell, and there is currently no compelling narrative in the eurozone to counter the exceptionalism story in the United States.