Investing.com - The broadly weaker U.S. dollar was trading close to a three-and-a-half month low against the Swiss franc on Tuesday, as speculation over the prospect of a fresh round of stimulus by the Federal Reserve mounted ahead of the bank’s upcoming policy meeting.
USD/CHF hit 0.9415 during European morning trade, the pair’s lowest since May 22; the pair subsequently consolidated at 0.9433, shedding 0.31%.
The pair was likely to find support at 0.9369, the low of May 22 and resistance at 0.9466, the session high.
The greenback remained under broad selling pressure amid speculation that the U.S. central bank may implement a third round of quantitative easing after its policy meeting which concludes on Thursday.
Government data on Friday showed that the U.S. economy added fewer-than-expected jobs in August, increasing the likelihood that the Fed will act to strengthen the U.S. economic recovery.
Meanwhile, investor confidence was bolstered by expectations that the German constitutional court would find that the euro zone’s new bailout fund, the European Stability Mechanism, was not a violation of the German constitution in a ruling on Wednesday.
Earlier Tuesday, the court rejected an application by a German MP to postpone the ruling until the European Central Bank altered its bond-buying program.
The Swissie was fractionally higher against the euro, with EUR/CHF slipping 0.06% to 1.2066.
Later Tuesday, the U.S. was to release official data on the trade balance.
USD/CHF hit 0.9415 during European morning trade, the pair’s lowest since May 22; the pair subsequently consolidated at 0.9433, shedding 0.31%.
The pair was likely to find support at 0.9369, the low of May 22 and resistance at 0.9466, the session high.
The greenback remained under broad selling pressure amid speculation that the U.S. central bank may implement a third round of quantitative easing after its policy meeting which concludes on Thursday.
Government data on Friday showed that the U.S. economy added fewer-than-expected jobs in August, increasing the likelihood that the Fed will act to strengthen the U.S. economic recovery.
Meanwhile, investor confidence was bolstered by expectations that the German constitutional court would find that the euro zone’s new bailout fund, the European Stability Mechanism, was not a violation of the German constitution in a ruling on Wednesday.
Earlier Tuesday, the court rejected an application by a German MP to postpone the ruling until the European Central Bank altered its bond-buying program.
The Swissie was fractionally higher against the euro, with EUR/CHF slipping 0.06% to 1.2066.
Later Tuesday, the U.S. was to release official data on the trade balance.