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Forex - USD/CHF edges lower, focus on euro zone outlook

Published 04/03/2012, 05:12 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar edged lower against the Swiss franc on Tuesday, as upbeat U.S. manufacturing data sent the greenback broadly lower while sustained concerns over a further slowdown in the euro zone continued to weigh.

USD/CHF hit 0.9014 during European morning trade, the daily low; the pair subsequently consolidated at 0.9020, retreating 0.19%.

The pair was likely to find support at 0.9001, Monday’s low and resistance at 0.9052, the high of March 27.

Demand for the safe haven dollar broadly weakened after data on Monday showed the U.S. manufacturing sector expanded more-than-forecast in March.

In addition, official data from China on Sunday showed that manufacturing activity in the world’s second largest economy jumped to an 11-month high last month.

But market sentiment remained under pressure after revised data showed that manufacturing activity in the euro zone remained in contraction territory for the eighth successive month in March, while a separate report showed that the bloc’s unemployment rate ticked up to a record high of 10.8% in February.

Elsewhere, the Swissie was steady against the euro with EUR/CHF edging 0.01% lower, to hit 1.2037.

Later in the day, the U.S. was to produce official data on factory orders, while the Federal Reserve was to release the minutes of its most recent policy meeting.


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