Investing.com – The U.S. dollar rose to a 10-week high against the Swiss franc on Wednesday, on speculation that European policy makers would intervene to prevent the further spread of the debt crisis engulfing the euro zone.
USD/CHF hit 1.0065 during European morning trade, the pair’s highest since September 21; the pair subsequently consolidated at 1.0055, gaining 0.19%.
The pair was likely to find support at 0.9942, the low of November 25 and resistance at 1.0181, the high of September 17.
Speculation mounted that European Central Bank would delay its exit from emergency liquidity measures after ECB President Jean-Claude Trichet said Tuesday that European policymakers needed to assert authority to fight “demanding” market conditions.
Meanwhile, on Wednesday, data showed that manufacturing activity in Switzerland rose more-than-expected in November.
The Swiss SVME purchasing managers' association and Credit Suisse said that its purchasing managers’ index rose to a seasonally adjusted 61.8 in November, up from 59.2 in October. Analysts had expected the index to rise to 59.5 in November.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
The Swissy was also down against the euro, with EUR/CHF surging 0.93% to hit 1.3151.
Later in the day, the U.S. was to release a report on ADP non-farm employment change, as well as official data on manufacturing activity. In addition, the Federal Reserve was to publish its Beige Book.
USD/CHF hit 1.0065 during European morning trade, the pair’s highest since September 21; the pair subsequently consolidated at 1.0055, gaining 0.19%.
The pair was likely to find support at 0.9942, the low of November 25 and resistance at 1.0181, the high of September 17.
Speculation mounted that European Central Bank would delay its exit from emergency liquidity measures after ECB President Jean-Claude Trichet said Tuesday that European policymakers needed to assert authority to fight “demanding” market conditions.
Meanwhile, on Wednesday, data showed that manufacturing activity in Switzerland rose more-than-expected in November.
The Swiss SVME purchasing managers' association and Credit Suisse said that its purchasing managers’ index rose to a seasonally adjusted 61.8 in November, up from 59.2 in October. Analysts had expected the index to rise to 59.5 in November.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
The Swissy was also down against the euro, with EUR/CHF surging 0.93% to hit 1.3151.
Later in the day, the U.S. was to release a report on ADP non-farm employment change, as well as official data on manufacturing activity. In addition, the Federal Reserve was to publish its Beige Book.