Investing.com - The U.S. dollar edged higher against the Swiss franc on Wednesday, but gains were limited as investors remained cautious after a highly anticipated liquidity operation by the European Central Bank.
USD/CHF hit 0.8976 during European late morning trade, the daily high; the pair subsequently consolidated at 0.8974, adding 0.20%.
The pair was likely to find support at 0.8922, the low of November 8 and resistance at 0.9026, the high of February 24.
The ECB said that it had allotted EUR529 billion in three-year loans to European lenders, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing operation late last year.
In December, the EBC issued EUR489 billion in three-year loans to 523 banks, averting a liquidity shortage in the euro zone’s banking system and easing pressure on the region’s bond markets.
The high uptake on the operation sparked concerns that banks in the region expect liquidity pressures to continue.
Meanwhile, the KOF Economic Research Agency said its index of 12 leading indicators improved slightly less-than-expected to minus 0.12 in February from January’s reading of minus 0.15, which was revised from a previously reported minus 0.17.
Analysts had expected the index to improve to 0.11 in February.
Elsewhere, the Swissie was steady against the euro with EUR/CHF edging down 0.01%, to hit 1.2052.
Later in the day, the U.S. was to release a preliminary report on fourth-quarter gross domestic product, followed by data on manufacturing activity in the Chicago area.
Federal Reserve Chairman Ben Bernanke was also due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
USD/CHF hit 0.8976 during European late morning trade, the daily high; the pair subsequently consolidated at 0.8974, adding 0.20%.
The pair was likely to find support at 0.8922, the low of November 8 and resistance at 0.9026, the high of February 24.
The ECB said that it had allotted EUR529 billion in three-year loans to European lenders, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing operation late last year.
In December, the EBC issued EUR489 billion in three-year loans to 523 banks, averting a liquidity shortage in the euro zone’s banking system and easing pressure on the region’s bond markets.
The high uptake on the operation sparked concerns that banks in the region expect liquidity pressures to continue.
Meanwhile, the KOF Economic Research Agency said its index of 12 leading indicators improved slightly less-than-expected to minus 0.12 in February from January’s reading of minus 0.15, which was revised from a previously reported minus 0.17.
Analysts had expected the index to improve to 0.11 in February.
Elsewhere, the Swissie was steady against the euro with EUR/CHF edging down 0.01%, to hit 1.2052.
Later in the day, the U.S. was to release a preliminary report on fourth-quarter gross domestic product, followed by data on manufacturing activity in the Chicago area.
Federal Reserve Chairman Ben Bernanke was also due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.