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Forex - USD/CHF extends gains after Bullard remarks

Published 03/29/2011, 07:01 AM
EUR/USD
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USD/CHF
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Investing.com – The U.S. dollar extended gains against the Swiss franc on Tuesday, after St. Louis Federal Reserve President James Bullard said U.S. policymakers may not wait for global uncertainties to be resolved before they begin normalizing monetary policy.

USD/CHF hit 0.9198 during European morning trade, the daily high; the pair subsequently consolidated at 0.9196, gaining 0.31%.

The pair was likely to find support at 0.9073, last Thursday’s low and resistance at 0.9233, Monday’s high and a nine-day high.

Speaking at an economic conference in Prague, Bullard said waiting too long to tighten monetary policy may produce "a lot of inflation" in the United States and around the world.

He added that now, around 18 months after the end of the U.S. recession, was around the time he expected the economy to pick up and start growing "fairly rapidly".

The dollar was also slightly higher against the euro, with EUR/USD dipping 0.03% to hit 1.4080.

Also Tuesday, UBS bank said that its consumption indicator for Switzerland continued to fall in February. The indicator dropped by 0.20 points to 1.46 points. That was the second consecutive month of decline.

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