Investing.com - The U.S. dollar was hovering close to a two-month low against the Swiss franc on Tuesday, as expectations that the European Central Bank will soon announce measures to tackle the region’s debt crisis underpinned investor sentiment.
USD/CHF hit 0.9510 during European morning trade, the pair’s lowest since Friday, the pair subsequently consolidated at 0.9524, slipping 0.12%.
The pair was likely to find near-term support at 0.9501, Friday’s low and a nine-week low and resistance at 0.9559, Monday’s high.
Overall market sentiment continued to be supported by expectations that the ECB will announce details of measures to help stabilize the region’s sovereign debt markets after its policy setting meeting on Thursday.
Investors were also anticipating the upcoming Federal Reserve’s policy meeting, amid speculation over how close the U.S. central bank is to implementing another round of easing.
Fed Chairman Ben Bernanke said in a speech on Friday that bank would act as needed to strengthen the economic recovery.
In Switzerland, official data showed that gross domestic product contracted by 0.1% in the second quarter, disappointing expectation for a 0.2% increase, as exports to the euro zone fell. Growth in the first quarter was revised down to 0.5%, from a previously reported 0.7%.
The Swiss economy still expanded at an annualized rate of 0.5% in the three months to June, compared with the same period last year.
The Swissie was little changed against the euro, with EUR/CHF inching up 0.01% to 1.2010.
Later Tuesday, the Institute for Supply Management was to release a closely watched report on U.S. manufacturing growth.
USD/CHF hit 0.9510 during European morning trade, the pair’s lowest since Friday, the pair subsequently consolidated at 0.9524, slipping 0.12%.
The pair was likely to find near-term support at 0.9501, Friday’s low and a nine-week low and resistance at 0.9559, Monday’s high.
Overall market sentiment continued to be supported by expectations that the ECB will announce details of measures to help stabilize the region’s sovereign debt markets after its policy setting meeting on Thursday.
Investors were also anticipating the upcoming Federal Reserve’s policy meeting, amid speculation over how close the U.S. central bank is to implementing another round of easing.
Fed Chairman Ben Bernanke said in a speech on Friday that bank would act as needed to strengthen the economic recovery.
In Switzerland, official data showed that gross domestic product contracted by 0.1% in the second quarter, disappointing expectation for a 0.2% increase, as exports to the euro zone fell. Growth in the first quarter was revised down to 0.5%, from a previously reported 0.7%.
The Swiss economy still expanded at an annualized rate of 0.5% in the three months to June, compared with the same period last year.
The Swissie was little changed against the euro, with EUR/CHF inching up 0.01% to 1.2010.
Later Tuesday, the Institute for Supply Management was to release a closely watched report on U.S. manufacturing growth.