• The US Dollar has bounced up to 0.7960, from session lows at 0.7930,
• The Greenback is trimming some losses during the European session, as the dust from the US government shutdown eases.
• SNB's Schlegel said that the economy shows moderate growth and that inflation is expected to pick up.
  

The US Dollar is trimming some losses during Wednesday’s European trading session as the impact of the US government shutdown wears off. The USD/CHF has bounced from session lows at 07930, returning to 0.7960, although it remains relatively far away from last week’s highs above 0.8000.

Investors have been selling the Greenback across the board this week, as the market braced for a US federal government shutdown that finally took place on Wednesday. The differences between Democrats and republicans about government funding have led to the first government closure in 7 years and are threatening to delay the release of Friday’s key Nonfarm Payrolls report.

Weak US employment data keep weighing on the USD

On the macroeconomic front, US JOLTS Openings increased moderately in August, but the lower hiring rate keeps investors' concerns about a cooling labour market intact, and is feeding hopes that the Fed will have to cut rates again later this month.

The focus today is on the US ADP employment report, which, barring exception, is unlikely to alter this view. The US economy is expected to have created 50K jobs in September, below the 54K seen in August and well below last year’s average figures.

In Switzerland, SNB’s president, Martin Schlegel, affirmed that inflation is expected to rise slightly in the coming quarters, while the economy points to moderate growth. This endorses the bank’s will to maintain interest rates on hold for the foreseeable future, and provides some support to the CHF.