⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Forex - USD/CHF rises to fresh 1 ½ year high on Fed minutes

Published 07/12/2012, 06:31 AM
USD/CHF
-
EUR/CHF
-
Investing.com - The U.S. dollar rose to a fresh one-and-a-half year high against the Swiss franc on Thursday, as the greenback found broad support after the minutes of the Federal Reserve’s June policy meeting dampened expectations for further easing measures.

USD/CHF hit 0.9846 during European early afternoon trade, the pair’s highest since December 13, 2010; the pair subsequently consolidated at 0.9848, rising 0.40%.

The pair was likely to find support at 0.9766, the low of July 11 and resistance at 0.9845, the day’s high.

The greenback rallied broadly after the Fed indicated that the U.S. economy would have to worsen further before the central bank implements additional easing measures.

While a few policymakers said the bank should ease policy to move the economy toward its targets for full employment and stable prices, others indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.

Meanwhile, risk sentiment also remained under pressure after the European Central Bank’s monthly bulletin reiterated that downside risks have materialized and that growth in the region will remain weak.

Investors were also cautious after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.

Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.

Elsewhere, the Swissie was flat against the euro with EUR/CHF trading at 1.2009.

Also Thursday, official data showed that industrial production in the euro zone rose for the first time in three months in May, increasing by 0.6%. Analysts had expected a modest 0.1% decline.

Later in the day, the U.S. was to release government data on unemployment claims and official data on import prices.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.