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Forex - USD/CHF almost unchanged in cautious trade

Published 03/21/2013, 06:33 AM
Updated 03/21/2013, 06:34 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 Thursday, as investors remained cautious after the release of weak economic reports from the euro zone, while concerns over the financial situation in Cyprus persisted.

USD/CHF hit 0.9474 during European morning trade, the session high; the pair subsequently consolidated at 0.9457, adding 0.06%.

The pair was likely to find support at 0.9412, Wednesday's low and resistance at 0.9492, the high of March 19.

Sentiment was hit after data showed the euro zone manufacturing purchasing managers’ index fell to a seasonally adjusted 46.6 in March, a three-month low, from 47.9 in February, compared to expectations for a reading of 48.2.

The euro zone services PMI fell to a five-month low of 46.5 from 47.9 in March.

Germany’s manufacturing PMI fell to 48.9 in March from 50.3 the previous month and the country’s services sector expanded at the slowest rate in four months.

The French manufacturing PMI came in at 43.9 in March, unchanged from February’s reading, while service sector activity in France fell to a 49-month low of 41.9.

Markets were also jittery as negotiations aimed at finding an alternative solution on a bailout deal for Cyprus continued after the parliament rejected a controversial bank deposit tax in a vote on Tuesday.

The Swissie was higher against the euro with EUR/CHF slipping 0.17%, to hit 1.2203.

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


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