Investing.com – The Swiss franc slid to a 3-day low against the U.S. dollar on Tuesday, as risk appetite staged a recovery and markets rallied and despite better-than-expected Swiss fourth quarter growth data.
USD/CHF hit 0.9322 during European morning trade, the pair’s highest since last Thursday; the pair subsequently consolidated at 0.9300, gaining 0.16%.
The pair was likely to find support at 0.9257, Monday’s low and resistance at 0.9391, last Wednesday’s high.
Earlier Tuesday, official data showed the Swiss economy unexpectedly expanded in the final quarter of 2010 as strong exports defied the record-high franc, supporting expectations for an earlier interest rate hike by the Swiss National Bank.
The State Secretariat for Economic Affairs said the economy grew by 0.9% in the fourth quarter, after expanding by an upwardly revised 0.8% in the previous quarter, outstripping forecasts for a 0.5% gain.
A separate report showed that that Swiss manufacturing activity rose significantly more-than-expected in February.
The Swissie was also down against the euro, with EUR/CHF rising 0.4% to hit 1.2873.
Later in the day, the Chairman of the Federal Reserve, Ben Bernanke, was to testify on the semi-annual monetary policy report before the Senate Banking Committee in Washington, while the U.S. Institute for Supply Management was to publish a report on manufacturing activity.
USD/CHF hit 0.9322 during European morning trade, the pair’s highest since last Thursday; the pair subsequently consolidated at 0.9300, gaining 0.16%.
The pair was likely to find support at 0.9257, Monday’s low and resistance at 0.9391, last Wednesday’s high.
Earlier Tuesday, official data showed the Swiss economy unexpectedly expanded in the final quarter of 2010 as strong exports defied the record-high franc, supporting expectations for an earlier interest rate hike by the Swiss National Bank.
The State Secretariat for Economic Affairs said the economy grew by 0.9% in the fourth quarter, after expanding by an upwardly revised 0.8% in the previous quarter, outstripping forecasts for a 0.5% gain.
A separate report showed that that Swiss manufacturing activity rose significantly more-than-expected in February.
The Swissie was also down against the euro, with EUR/CHF rising 0.4% to hit 1.2873.
Later in the day, the Chairman of the Federal Reserve, Ben Bernanke, was to testify on the semi-annual monetary policy report before the Senate Banking Committee in Washington, while the U.S. Institute for Supply Management was to publish a report on manufacturing activity.