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Forex - USD/CHF rises to 7-day highs on Fed statement

Published 10/31/2013, 07:07 AM
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Investing.com - The U.S. dollar rose to seven-day highs against the Swiss franc on Thursday, as the Federal Reserve's policy statement lent support to the greenback.

USD/CHF hit 0.9034 during European morning trade, the pair's highest since October 22; the pair subsequently consolidated at 0.9028, gaining 0.39%.

The pair was likely to find support at 0.8944, the low of October 29 and resistance at 0.9128, the high of September 10.

The dollar strengthened after the Fed left its USD85 billion-a-month asset purchase program in place and gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.

"The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing.

The Swissie was higher against the euro with EUR/CHF slipping 0.15%, to hit 1.2332.

In the euro zone, official data showed that consumer price inflation rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September. Economists had expected the rate of inflation to remain unchanged.

The rate is further below the European Central Bank's target of near but just below 2%.

A separate report showed that the euro zone unemployment rate remained unchanged at a record high 12.2% in September, compared to expectations for a decline to 12%.

Earlier Thursday data showed that German retail sales fell unexpectedly for a second month in September, down 0.4% on a monthly basis. Economists had expected a 0.4% rise.

Later in the day, the U.S. was to release data on initial jobless claims and a report on manufacturing activity in the Chicago region.


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