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Forex - USD/CHF higher, Fed jitters persist

Published 06/12/2013, 05:37 AM
Updated 06/12/2013, 05:45 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar was higher against the Swiss franc on Wednesday, as speculation over whether the Federal Reserve will begin to scale back its asset purchase program later this year continued to dominate market sentiment.

USD/CHF hit 0.9276 during European morning trade, the session high; the pair subsequently consolidated at 0.9278, gaining 0.34%.

The pair subsequently consolidated at 0.9206, the low of April 17 and resistance at 0.9350, Tuesday's high.

Speculation that the U.S. central bank will begin to taper its asset purchase program continued following Friday’s upbeat jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.

Meanwhile, market sentiment remained mildly supported after Germany's Finance Minister Wolfgang Schauble defended the European Central Bank’s bond purchasing scheme at a hearing in Germany’s constitutional court into the legality of the program on Tuesday.

The Swissie was fractionally lower against the euro with EUR/CHF edging 0.04% higher, to hit 1.2315.

Also Wednesday, official data showed that industrial production in the euro zone rose 0.4% in April, confounding expectations for a 0.2% fall, after a 0.9% increase the previous month.


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