Forex - USD/CHF hits 1-week low ahead of Bernanke testimony

Published 07/17/2012, 05:29 AM
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Investing.com -The U.S. dollar fell to a one-week low against the Swiss franc on Tuesday, amid talk that Federal Reserve Chairman Ben Bernanke will hint at fresh stimulus measures in testimony later in the day.

USD/CHF hit 0.9752 during European morning trade, the pair’s lowest since July 10; the pair subsequently consolidated at 0.9764, shedding 0.21%.

The pair was likely to find support at 0.9683, the low of July 6 and resistance at 0.9790, the session high.

The greenback weakened ahead of testimony to the U.S. Senate by Fed Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate the economy.

Expectations for another round of quantitative easing were boosted on Monday after official data showed a third consecutive monthly decline in U.S. retail sales in June.

In June, Bernanke said the Fed remained prepared to take additional steps to support economic growth if necessary, including additional asset purchases.

The Swissie was little changed against the euro, with EUR/CHF dipping 0.01% to 1.2009.

Also Tuesday, the U.S. was to publish official data on consumer price inflation, as well as reports on the capacity utilization rate and industrial production.


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