Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Forex - USD/CHF edges lower, eyes on ECB meeting

Published 03/07/2013, 05:41 AM
Updated 03/07/2013, 05:42 AM
USD/CHF
-
EUR/CHF
-
Investing.com - The U.S. dollar edged lower against the Swiss franc on Thursday, as market sentiment slightly improved ahead of the European Central Bank's monthly policy statement, later in the day.

USD/CHF hit 0.9454 during European morning trade, the session low; the pair subsequently consolidated at 0.9472, slipping 0.16%.

The pair was likely to find support at 0.9403, Wednesday's low and resistance at 0.9513, the high of November 13 and a two-month high.

The ECB was widely expected to leave rates on hold at 0.75%, but concerns over the economic outlook for the region fuelled speculation over the prospect of future rate cuts.

Euro zone growth concerns re-emerged after data on Wednesday confirmed that the euro zone economy contracted by 0.6% in the fourth quarter, in line with preliminary estimates and economists’ forecasts.

The dollar remained supported however, after ADP nonfarm payrolls data on Wednesday showed that the U.S. private sector added 198,000 jobs in February, above expectations for an increase of 170,000.

The upbeat data fuelled optimism over a recovery in the U.S. labor market.

Earlier in the day, the Swiss National Bank said that foreign currency reserves fell to CHF427.7 billion from CHF429.5 billion the previous month.

The Swissie was lower against the euro with EUR/CHF rising 0.25%, to hit 1.2336.

Also Thursday, Spain’s Treasury sold EUR2.435 billion worth of ten-year government bonds at an average yield of 4.917% earlier in the day, down from 5.202% at a previous auction.

Later in the day, the U.S. was to publish the weekly government report on initial jobless claims and official data on the trade balance.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.