Investing.com - The U.S. dollar slipped lower against the Swiss franc on Tuesday, as Monday’s weak U.S. manufacturing data fuelled speculation over the possibility of more easing by the Federal Reserve.
USD/CHF hit 0.9524 during European morning trade, the session low; the pair subsequently consolidated at 0.9542, slipping 0.09%.
The pair was likely to find support at 0.9471, Monday’s low and resistance at 0.9582, the high of June 21.
The Institute for Supply Management said its index of U.S. manufacturing activity dropped to 49.7 in June, falling below the 50 level which separates contraction from expansion for the first time since July 2009, from 53.5 in May.
The weak data increased the chances that the U.S. central bank may implement a third round of quantitative easing to shore up economic growth, which has been hit by the ongoing debt crisis in the euro zone.
In addition, investors were looking ahead to the outcome of Bank of England and European Central Bank monetary policy meetings later in the week.
The BoE was expected to implement a fresh round of stimulus measures following Thursday’s meeting, while the ECB was expected to announce a rate cut in order to help bolster the region’s economy.
The Swissie was little changed against the euro, with EUR/CHF inching up 0.02% to 1.2014.
Later in the day, the U.S. was to publish official data on factory orders.
USD/CHF hit 0.9524 during European morning trade, the session low; the pair subsequently consolidated at 0.9542, slipping 0.09%.
The pair was likely to find support at 0.9471, Monday’s low and resistance at 0.9582, the high of June 21.
The Institute for Supply Management said its index of U.S. manufacturing activity dropped to 49.7 in June, falling below the 50 level which separates contraction from expansion for the first time since July 2009, from 53.5 in May.
The weak data increased the chances that the U.S. central bank may implement a third round of quantitative easing to shore up economic growth, which has been hit by the ongoing debt crisis in the euro zone.
In addition, investors were looking ahead to the outcome of Bank of England and European Central Bank monetary policy meetings later in the week.
The BoE was expected to implement a fresh round of stimulus measures following Thursday’s meeting, while the ECB was expected to announce a rate cut in order to help bolster the region’s economy.
The Swissie was little changed against the euro, with EUR/CHF inching up 0.02% to 1.2014.
Later in the day, the U.S. was to publish official data on factory orders.