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Forex - USD/CHF pushes higher, Fed statement eyed

Published 10/24/2012, 07:06 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar pushed higher against the Swiss franc on Wednesday, as encouraging Chinese economic data offset weak data out of the euro zone, while investors anticipated the outcome of the Federal Reserve’s policy meeting later in the day.

USD/CHF hit 0.9361 during European early afternoon trade, the pair’s highest since October 15; the pair subsequently consolidated at 0.9349, gaining 0.28%.

The pair was likely to find support at 0.9313, the session low and resistance at 0.9417, the high of October 11.

Earlier Wednesday, data showed that the flash euro zone manufacturing purchasing managers’ index fell to 45.3 in October from a final reading of 46.1 in September, fuelling fears over the deepening economic impact of the region’s long-running debt crisis.

Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, adding to worries over outlook for the bloc’s largest economy.

Separately, a report by German research institute Ifo showed that its business climate index fell to 100.0 in October, the lowest level since March 2010, from a reading of 101.4 in September.

The weak euro zone data offset a report earlier showed that China's HSBC manufacturing PMI improved to 49.1 in October, compared with a final reading of 47.9 in September.

The Swissie was fractionally higher against the euro, with EUR/CHF inching up 0.08% to 1.2097.

Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.

Meanwhile, European Central Bank President Mario Draghi was to attend a meeting in Germany’s central bank, which was to be followed by a press conference.


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