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Forex - USD/CHF almost unchanged, near 3-week highs

Published 09/04/2013, 05:46 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar was almost unchanged against the Swiss franc on Wednesday, hovering near three-week highs, as growing expectations for the Federal Reserve to soon begin tapering its stimulus program supported the greenback.

USD/CHF hit 0.9360 during European morning trade, the session low; the pair subsequently consolidated at 99.55, dipping 0.02%.

The pair was likely to find support at 0.9314, the low of September 2 and resistance at 0.9416, the high of July 21.

Upbeat U.S. manufacturing data on Tuesday added to expectations that the U.S. central bank could start to unwind its asset purchase program at its upcoming policy meeting on September 17-18.

The Institute for Supply Management said its purchasing managers’ index rose to 55.7 in August from a reading of 55.4 in July, expanding at the fastest rate since April 2011. Analysts had expected a reading of 54.0.

Investors were looking ahead to Friday’s U.S. nonfarm payrolls report which is seen as central to the Fed’s decision on tapering.

Meanwhile, investors remained cautious after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention against Syria.

The Swissie was steady against the euro with EUR/CHF inching up 0.02%, to hit 1.2337.

In the euro zone, data showed that the final reading of Germany’s services purchasing managers' index came in at 52.8 in August, up from a preliminary reading of 52.4. The euro zone’s services PMI dipped to 50.7, from an initial estimate for 51.0.


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