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Forex - USD/CHF lower in edgy trade as central banks eyed

Published 07/31/2012, 06:11 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar was lower against the Swiss franc in cautious trade on Tuesday, amid growing concerns over whether the European Central Bank will disappoint market expectations for bold steps to tackle the debt crisis in the euro zone.

USD/CHF hit 0.9767 during European morning trade, the session low; the pair subsequently consolidated at 0.9772, shedding 0.24%.

The pair was likely to find support at 0.9693, the low of July 27 and resistance at 0.9822, Monday’s high.

Expectations have been building that the ECB will announce measures to stem the long running debt crisis after central bank head Mario Draghi pledged last week to do whatever is necessary to preserve the euro.

But investors remained wary amid concerns that an inadequate policy response by the ECB could send markets lower.

Germany is opposed to granting a banking license to the bloc’s bailout fund and to the resumption of the ECB’s bond buying program.

Market participants were also anticipating the outcome of the Federal Reserve’s policy setting meeting on Wednesday, amid speculation over whether the U.S. central bank will indicate if further quantitative easing measures are imminent.

The Swissie was little changed against the euro, with EUR/CHF inching up 0.03% to 1.2015.

Later Tuesday, the U.S. was to release industry data on house price inflation, a report on consumer confidence and data on manufacturing activity in the Chicago area.

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