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Forex - USD/CHF hits 2-day high after weak Swiss retail sales data

Published 08/02/2010, 04:02 AM
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Investing.com – The U.S. dollar extended early gains against the Swiss franc on Monday, hitting a 2-day high after official data showed Swiss retail sales slumped unexpectedly in June.

USD/CHF hit 1.0476 during European morning trade, the pair's highest since July 29; the pair subsequently consolidated at 1.0469, gaining 0.54%.

The pair was likely to find support at 1.0361, the low of July 30 and a 10-month low and resistance at 1.0640, the high of July 27.

Earlier in the day, Switzerland's Federal Statistics Bureau said retail sales rose by a seasonally adjusted 0.9% in June, after rising 3.9% in May, whose figure was revised up from 3.8%.

Analysts had expected retail sales to increase 4.1% in June.

The report said that year-on-year retail sales increased by a seasonally adjusted 1.3%.

The Swissy was also down against the euro, with EUR/CHF gaining 0.76% to hit 1.3694.

Later in the day, the U.S. was to release key manufacturing data, while the Federal Reserve Chairman Ben Bernanke was also to make a speech on the difficulties currently facing the U.S. economy.

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