USD/CHF eases below 0.99 after ADP report

The USD/CHF felt some increased selling pressure after the private sector employment numbers from the Unites States and dropped to its lowest level since March 28 at 0.9890. As of writing, the pair was trading at 0.9893, losing 0.24% on the day.

Although today's ADP employment report from the United States revealed that the private sector employment increased by 177,000 jobs in April, beating the expectations of 175K, the fact that it dropped sharply from March's 263K weakened the greenback against its competitors. After recovering from 98.75 area towards 99 during the European trading hours, the US Dollar Index fell to 98.87 after the data and is now moving around 98.90, still up 0.15% on the day.

• US: Private Sector Employment Increased by 177,000 Jobs in April - ADP

Now the ADP report is out of the way, the participants are focused on the Fed's interest rate decision and FOMC's monetary policy statement, which are due to be released at 18:00 GMT. Although the Fed is not expected to make a policy move, the statement could provide some clues regarding the timing of the next rate hike. The general consensus is for the Fed to make another rate hike in June.

• FOMC Preview: 9 major banks expectation from May meeting

Technical levels to consider

A decisive break below 0.9890 (Apr. 28 low) could open the door for the pair towards 0.9810 (Mar. 27 low) and 0.9735 (Nov. 8 low). On the flip side, 0.9920 (daily high) could be seen as the initial hurdle ahead of 0.9985 (200-DMA) and 1.0000 (psychological level).