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Forex - USD/CHF edges up to 4-day high as Fed easing fears wane

Published 10/18/2010, 06:17 AM
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EUR/CHF
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Investing.com – The U.S. dollar edged higher against the Swiss franc on Monday, rising to hit a 4-day high, amid a view that expectations for further monetary easing by the Federal Reserve were already priced into the market.

USD/CHF hit 0.9650 during European morning trade, the pair’s highest since October 12; the pair subsequently consolidated at 0.9614, gaining 0.26%.

The pair was likely to find support at 0.9462, the low of October 14 and an all time low and resistance at 0.9727, the high of October 12.

On Friday, Federal Reserve chairman Ben Bernanke said there was a case for further monetary easing, given high unemployment and low inflation. But he said any action would be "contingent on incoming information about the economic outlook and financial conditions."

His remarks prompted speculation that expectations of large scale monetary easing were overdone.

Meanwhile, the Swissy was up against the euro, with EUR/CHF shedding 0.34% to hit 1.3356.

Later in the day, the U.S. was to release official data on TIC long term purchases as well as data on the capacity utilization rate and industrial production.


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