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Forex - USD/CHF falls after Federal Reserve keeps policy loose

Published 05/01/2013, 03:05 PM
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Forexpros - The Swiss franc firmed against the dollar on Wednesday after the Federal Reserve concluded a monetary policy meeting making no changes to interest rates and stimulus programs.

USD/CHF hit 0.9258 in U.S. trading on Wednesday, down 0.39%, up from a session low of 0.9248 and off from a high of 0.9310.

The pair was likely to find support at 0.9206, the low from April 17, and resistance at 0.9430, Monday's high.

Concerned about "downside risks" to recovery, especially when it comes to fiscal uncertainty in the U.S., the Fed said its stimulus tools will stay in place, including the Fed's monthly USD85 billion bond-buying program, which weakens the greenback to encourage investing and job-demand.

Interest rates will remain near zero.

Soft data out of the U.S. weakened the greenback as well.

The Institute for Supply Management said earlier that its manufacturing purchasing managers’ index fell to 50.7 in April from 51.3 in March, worse than expectations for a 50.9 reading.

Payroll processor ADP said private-sector nonfarm payrolls rose by 119,000 in April, well below expectations for an increase of 150,000.

ADP's March figure was revised down to a gain of 131,000 from a previously reported increase of 158,000.

Meanwhile, the Swiss franc was up against the euro and up against the pound, with EUR/CHF losing 0.05% to trade at 1.2230 and GBP/CHF falling 0.05% at 1.4428.

On Thursday, the U.S. is to publish the weekly government report on initial jobless claims as well as official data on the trade balance, while Switzerland is to publish its SVME PMI, a leading economic indicator.









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