Forex - USD/CHF edges higher in cautious trade

Published 11/01/2012, 04:51 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 Thursday, after improved manufacturing data out of China supported sentiment but investors remained cautious ahead of U.S. data on nonfarm payrolls on Friday and the U.S. presidential elections next week.

USD/CHF hit 0.9342 during European morning trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 0.9332, gaining 0.18%.

The par was likely to find support at 0.9275, Wednesday’s low and resistance at 0.9373, Tuesday’s high.

Market sentiment found support after official data showed that China’s manufacturing purchasing managers’ index came in at 50.2 in October, up from 49.8 in September, just slightly below forecasts for a reading of 50.3.

A separate report showed that the final reading of China’s HSBC PMI came in at 49.5 in September, an eight month high.

But demand for the safe haven dollar continued to be underpinned amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.

The Swiss franc was little changed after official data showed that retail sales in Switzerland jumped 5.4% in September, above expectations for a 4.2% gain.

Retail sales for August were revised up to a 6.0% gain from a previously reported 5.9% increase.

A separate report showed that the Swiss SVME PMI rose to 46.1 in September from a reading of 43.6 in August, remaining in contraction territory for the seventh consecutive month.

The Swissie was steady against the euro, with EUR/CHF inching up 0.02% to 1.2075.

Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims.

In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.


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