Investing.com – The U.S. dollar rebounded from a 5-week low against the Swiss franc on Wednesday as U.S. Treasury yields climbed after the Federal Reserve indicated that it would complete its economic stimulus plan.
USD/CHF hit 0.9644 during European morning trade, the daily high; the pair subsequently consolidated at 0.9611, gaining 0.18%.
The pair was likely to find short-term support at 0.9559, Tuesday’s low and a 5-week low and resistance at 0.9689, Tuesday’s high.
Earlier in the day, the 10-year Treasury yield soared to a 7-month high, after Tuesday’s stronger-than-expected U.S. retail sales data lifted fourth quarter growth prospects and after the Fed left the size of its bond-purchase program unchanged.
The purchases will “promote a stronger pace of economic recovery” and keep prices stable “over time,” the Federal Open Market Committee said Tuesday.
The central bank also left its key interest rate unchanged, in line with expectations.
Also Wednesday, a report by the ZEW Center for Economic Research showed that Swiss economic expectations improved in December.
The Credit Suisse ZEW Indicator surged 18.4 points to -12.5. On the index a reading above zero indicates optimism, below indicates pessimism.
Meanwhile, the Swissy was up against the euro, with EUR/CHF shedding 0.40% to hit 1.2785.
Later in the day, the U.S. was to publish a flurry of data, with reports on consumer price inflation as well as data on manufacturing activity in New York State. The country was also to publish official data on industrial production.
USD/CHF hit 0.9644 during European morning trade, the daily high; the pair subsequently consolidated at 0.9611, gaining 0.18%.
The pair was likely to find short-term support at 0.9559, Tuesday’s low and a 5-week low and resistance at 0.9689, Tuesday’s high.
Earlier in the day, the 10-year Treasury yield soared to a 7-month high, after Tuesday’s stronger-than-expected U.S. retail sales data lifted fourth quarter growth prospects and after the Fed left the size of its bond-purchase program unchanged.
The purchases will “promote a stronger pace of economic recovery” and keep prices stable “over time,” the Federal Open Market Committee said Tuesday.
The central bank also left its key interest rate unchanged, in line with expectations.
Also Wednesday, a report by the ZEW Center for Economic Research showed that Swiss economic expectations improved in December.
The Credit Suisse ZEW Indicator surged 18.4 points to -12.5. On the index a reading above zero indicates optimism, below indicates pessimism.
Meanwhile, the Swissy was up against the euro, with EUR/CHF shedding 0.40% to hit 1.2785.
Later in the day, the U.S. was to publish a flurry of data, with reports on consumer price inflation as well as data on manufacturing activity in New York State. The country was also to publish official data on industrial production.