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Forex - USD/CHF little changed ahead of Bernanke speech

Published 08/29/2012, 06:30 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar was little changed against the Swiss franc on Wednesday, as markets treaded water ahead of a highly anticipated speech by Federal Reserve Chairman Ben Bernanke on Friday.

USD/CHF hit 0.9583 during European morning trade, the session high; the pair subsequently consolidated at 0.9565, inching up 0.08%.

The pair was likely to find support at 0.9537, the low of August 23 and a seven-week low and resistance at 0.9634, Tuesday’s high.

The pair looked likely to remain locked in a tight range ahead of a speech by Federal Reserve Chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

Last week’s minutes of the Fed’s August meeting indicated that many policymakers may be leaning towards additional quantitative easing.

Meanwhile, market sentiment continued to be underpinned by expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.

Earlier Wednesday, Italy saw borrowing costs decline to the lowest level since March at an auction of six-month government bonds which attracted solid investor demand.

The Swissie was steady against the euro, with EUR/CHF inching up 0.01% to 1.2010.

Later in the day, the U.S. was to release revised data on second quarter economic growth, as well as industry data on pending home sales.


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