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Forex - USD/CHF edges higher but gains limited

Published 10/21/2013, 05:48 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar edged higher against the Swiss franc on Monday, but gains were limited as expectations for the Federal Reserve to delay the tapering of its stimulus program dented demand for the greenback.

USD/CHF hit 0.9042 during European morning trade, the pair's highest since October 17; the pair subsequently consolidated at 0.9032, adding 0.15%.

The pair was likely to find support at 0.8968, the low of October 3 and a multi-month low and resistance at 0.9128, the high of October 9.

The dollar remained under pressure as concerns over the impact of the 16-day shutdown on the U.S. economic recovery fuelled expectations that the Fed would delay plans for rolling back its asset purchase program until at least the beginning of next year.

Investors were awaiting U.S. data releases later in the week after the shutdown delayed the release of some key economic reports. The September nonfarm payrolls report, which had been originally scheduled for release on October 4, was due on Tuesday.

The Swissie was fractionally lower against the euro with EUR/CHF edging up 0.08%, to hit 1.2354.

In the euro zone, data showed that German producer price inflation rose 0.3% from a month earlier in September, better than expectations for a 0.1% increase.

Later in the day, the U.S. was to release private sector data on existing home sales.


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