⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Forex - USD/CHF edges lower in subdued trade

Published 08/01/2012, 06:34 AM
USD/CHF
-
EUR/CHF
-
Investing.com - The U.S. dollar edged lower against the Swiss franc on Wednesday, as markets awaited the Federal Reserve’s rate statement later in the day, and looked ahead to the outcome of Thursday’s European Central Bank policy meeting.

USD/CHF hit 0.9738 during European late morning trade, the pair’s lowest since July 27; the pair subsequently consolidated at 0.9751, dipping 0.11%.

The pair was likely to find support at 0.9693, the low of July 27 and resistance at 0.9779, the session high.

Sentiment remained subdued amid fading expectations for Federal Reserve and the ECB to ease monetary policy this week, in an attempt to spur economic growth in the U.S. and stem the long running debt crisis in the euro zone.

Market participants were eyeing the outcome of the Fed’s policy setting meeting on Wednesday, as investors waited to see if the U.S. central bank will indicate whether further quantitative easing measures are imminent.

Investors were also looking ahead to Thursday’s ECB meeting amid growing concerns that the central bank will disappoint expectations for bold steps to counter the debt crisis in the euro zone.

Expectations have been mounting that the ECB will announce measures to lower Spanish and Italian borrowing costs after the bank’s head Mario Draghi pledged last week to do whatever is necessary to preserve the euro.

Earlier in the day, German Bundesbank President Jens Weidmann said that governments had overestimated the ECB's capacities and placed too many demands on it.

The Swissie was steady against the euro, with EUR/CHF dipping 0.01% to 1.2011.

Later Wednesday, the U.S. was also to release data on non-farm employment change, while the Institute for Supply Management was to produce a report on U.S. manufacturing activity.

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.