Investing.com - The U.S. dollar was lower against the Swiss franc on Thursday, after the Swiss National Bank left its benchmark interest rate unchanged and held its cap on the franc at 1.20 per euro.
USD/CHF hit 0.9406 during European morning trade, the pair’s lowest since December 13; the pair subsequently consolidated at 0.9441, retreating 0.96%.
The pair was likely to find support at 0.9246, the low of December 12 and resistance at 0.9601, the high of February 17.
The SNB held its minimum exchange rate target of 1.20 per euro earlier, confounding speculation it would move to weaken the currency further, although it said it could take further action at any time if risks to the economy mount.
The bank also forecast modest growth for next year and only slightly falling prices, leaving investors uncertain over whether a rise in the franc cap was likely early in 2012.
Earlier Thursday, official data showed that industrial production in Switzerland declined more-than-expected in the third quarter, falling 1.4% after a 2.9% rise the previous quarter.
Analysts had expected industrial production to fall 0.7% in the third quarter.
Meanwhile, market sentiment remained weak after last Friday’s European Union summit failed to result in any decisive measures to tackle the debt crisis in the region, sparking fears over mass ratings cuts across the euro zone.
Elsewhere, the Swissie was up against the euro with EUR/CHF declining 0.87%, to trade at 1.2271.
Later in the day, the U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York State.
USD/CHF hit 0.9406 during European morning trade, the pair’s lowest since December 13; the pair subsequently consolidated at 0.9441, retreating 0.96%.
The pair was likely to find support at 0.9246, the low of December 12 and resistance at 0.9601, the high of February 17.
The SNB held its minimum exchange rate target of 1.20 per euro earlier, confounding speculation it would move to weaken the currency further, although it said it could take further action at any time if risks to the economy mount.
The bank also forecast modest growth for next year and only slightly falling prices, leaving investors uncertain over whether a rise in the franc cap was likely early in 2012.
Earlier Thursday, official data showed that industrial production in Switzerland declined more-than-expected in the third quarter, falling 1.4% after a 2.9% rise the previous quarter.
Analysts had expected industrial production to fall 0.7% in the third quarter.
Meanwhile, market sentiment remained weak after last Friday’s European Union summit failed to result in any decisive measures to tackle the debt crisis in the region, sparking fears over mass ratings cuts across the euro zone.
Elsewhere, the Swissie was up against the euro with EUR/CHF declining 0.87%, to trade at 1.2271.
Later in the day, the U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York State.