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Forex - USD/CHF little changed in cautious trade

Published 11/08/2012, 04:13 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar was ticking up and down between small gains and losses against the Swiss franc on Thursday, as concerns over U.S. fiscal policy weighed on market sentiment.

USD/CHF hit 0.9442 during European morning trade, the session low; the pair subsequently consolidated at 0.9445, inching down 0.02%.

The pair was likely to find near-term support at 0.9398, the low of November 5 and resistance at 0.9470, Wednesday’s high and a two-month high.

The outlook for U.S. and global growth was clouded amid concerns over the U.S. fiscal cliff, USD500 billion of automatic tax hikes and spending cuts due to come into effect on January 1, unless lawmakers can reach an agreement.

Market sentiment found some support after Greece’s parliament narrowly approved fresh austerity measures required to secure the next installment of bailout funds late Wednesday, but the measures look likely to exacerbate the country’s recession.

Investors were looking ahead to the European Central Bank's policy-setting meeting and President Mario Draghi's press conference later in the day.

The Swiss franc showed little reaction after official data showed that the unemployment rate in Switzerland ticked up to 3% in October from 2.9% the previous month, in line with expectations.

It was the first increase in the unemployment rate in six months, indicating that jobs are being eliminated as a result of slowing growth in Europe.

The Swissy was fractionally lower against the euro, with EUR/CHF dipping 0.04% to 1.2060.

Later Thursday, the eurogroup of finance ministers were to hold talks in Brussels to discuss financial issues in the bloc.

Elsewhere, the U.S. was to publish official data on the trade balance as well as the weekly government report on initial jobless claims.




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