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Forex - USD/CHF off 7-day low as risk appetite recovers modestly

Published 05/19/2011, 06:12 AM
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Investing.com – The U.S. dollar eased off a seven-day low against the Swiss franc on Thursday, as gains in commodity prices and equity markets dampened demand for traditional safe haven assets.

USD/CHF pulled away from 0.8763, the pair’s lowest since May 10, to hit 0.8829 during European morning trade, easing up 0.23%.

The pair was likely to find support at 0.8705, the low of May 10 and resistance at 0.8937, the high of May 16.

The Swiss franc remained supported after European Central Bank President Jean-Claude Trichet warned earlier that the bank would be unable to accept Greece's government bonds as collateral in the event of a restructuring of its debt.

Also Thursday, a report showed that Swiss investor confidence dropped for the first time in three months in May as the ongoing euro zone debt crisis and the stronger franc weighed.

The ZEW Center for European Economic Research said its index of investor expectations fell to minus 11.5 from 8.8 in April.

The Swissie was also lower against the euro, with EUR/CHF rising 0.39% to hit 1.2600.

Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.


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