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Forex - USD/CHF hits 5-day high as Fed FOMC minutes awaited

Published 10/12/2010, 05:57 AM
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Investing.com – The U.S. dollar was up against the Swiss franc on Tuesday, rising to a 5-day high, ahead of the publication of the minutes of the Federal Reserves most recent policy setting meeting.

USD/CHF hit 0.9729 during European morning trade, the pair’s highest since October 5; the pair subsequently consolidated at 0.9668, gaining 0.21%.

The pair was likely to find support at 0.9554, the low of October 7 and the pair’s all time low and resistance at 0.9842, the high of October 1.

Over the weekend, members of the International Monetary Fund, including Switzerland, met but the talks ended with world financial leaders failing to reach agreement on currency imbalance issues.

Earlier Tuesday, UBS bank’s head of foreign exchange research, Thomas Flury said he believed more currency volatility was just around the corner.

“Currency devaluation tends to come in waves and we see another wave coming because the U.S. Federal Reserve has announced it would come in with another round of quantitative easing if the U.S. economy should falter,” he said.

Meanwhile, the Swissy was up against the euro, with EUR/CHF shedding 0.20% to hit 1.3361.

Later in the day, the Fed was to publish the minutes of its September 21 meeting of the Federal Open Market Committee.

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