Investing.com – The euro trimmed gains against the Swiss franc on Wednesday, to trade close to the pair’s all-time low as investors turned more cautious ahead of testimony from Federal Reserve Chairman Ben Bernanke later in the day.
EUR/CHF pulled back from 1.1721, the daily high, to hit 1.1639 during European late afternoon trade, still up 0.28% on the day.
The pair was likely to find short-term support at 1.1551, Tuesday’s low and the pair’s all-time low and resistance at 1.1750, Tuesday’s high.
The euro rebounded against the Swiss franc earlier Wednesday, as market sentiment was boosted by official data showing that Chinese gross domestic product expanded by 9.5% in the second quarter, easing concerns over a sharp slowdown in the world’s second largest economy.
But investors remained wary as Irish bond yields surged to euro-lifetime highs, after Ireland became the third euro zone member, after Greece and Portugal, to have its sovereign debt rating slashed to junk status.
Meanwhile, Federal Reserve Chairman Ben Bernanke was to give testimony on the U.S. economic outlook before lawmakers in Washington later in the day and was likely to be asked why the central bank’s current stimulus measures have not been more effective in reducing unemployment.
The euro held gains against the yen, with EUR/JPY up 0.64% to hit 111.45.
Also Wednesday, official data showed that Switzerland's producer price index fell 0.5% in June, more than the forecast 0.2% decline, mainly due to lower prices for petroleum and metal products.
EUR/CHF pulled back from 1.1721, the daily high, to hit 1.1639 during European late afternoon trade, still up 0.28% on the day.
The pair was likely to find short-term support at 1.1551, Tuesday’s low and the pair’s all-time low and resistance at 1.1750, Tuesday’s high.
The euro rebounded against the Swiss franc earlier Wednesday, as market sentiment was boosted by official data showing that Chinese gross domestic product expanded by 9.5% in the second quarter, easing concerns over a sharp slowdown in the world’s second largest economy.
But investors remained wary as Irish bond yields surged to euro-lifetime highs, after Ireland became the third euro zone member, after Greece and Portugal, to have its sovereign debt rating slashed to junk status.
Meanwhile, Federal Reserve Chairman Ben Bernanke was to give testimony on the U.S. economic outlook before lawmakers in Washington later in the day and was likely to be asked why the central bank’s current stimulus measures have not been more effective in reducing unemployment.
The euro held gains against the yen, with EUR/JPY up 0.64% to hit 111.45.
Also Wednesday, official data showed that Switzerland's producer price index fell 0.5% in June, more than the forecast 0.2% decline, mainly due to lower prices for petroleum and metal products.