Investing.com – The U.S. dollar was steady against the Swiss franc on Wednesday, trading in a narrow range after Tuesday’s surprise announcement by the Swiss central bank of an exchange rate cap for the franc knocked more than 8% off the value of the currency.
USD/CHF hit 0.8540 during European morning trade, the daily low; the pair subsequently consolidated at 0.8575, shedding 0.51%.
The pair was likely to find support at 0.8537, the day’s low and resistance at 0.8626, Tuesday’s high and a three-and-a-half-month high.
On Tuesday, the Swiss National Bank said it would no longer tolerate an exchange rate below 1.20 francs to the euro and would defend that level by buying other currencies in “unlimited quantities.”
The central bank said the massive overvaluation of the franc posed an acute threat to the Swiss economy and carried a risk of deflation.
Meanwhile, concerns over the debt crisis in the euro zone eased slightly after Germany’s high court upheld the legality of Greece’s bailout but ruled that the country’s parliament must approve future euro zone rescue packages.
Meanwhile, the Swiss franc was trading close to it newly established ceiling against the euro, with EUR/CHF dipping 0.08% to hit 1.2056.
Later in the day, Federal Reserve Bank of Chicago President Charles Evans was to speak. The Fed was also to publish its beige book, which looks at regional economic conditions.
USD/CHF hit 0.8540 during European morning trade, the daily low; the pair subsequently consolidated at 0.8575, shedding 0.51%.
The pair was likely to find support at 0.8537, the day’s low and resistance at 0.8626, Tuesday’s high and a three-and-a-half-month high.
On Tuesday, the Swiss National Bank said it would no longer tolerate an exchange rate below 1.20 francs to the euro and would defend that level by buying other currencies in “unlimited quantities.”
The central bank said the massive overvaluation of the franc posed an acute threat to the Swiss economy and carried a risk of deflation.
Meanwhile, concerns over the debt crisis in the euro zone eased slightly after Germany’s high court upheld the legality of Greece’s bailout but ruled that the country’s parliament must approve future euro zone rescue packages.
Meanwhile, the Swiss franc was trading close to it newly established ceiling against the euro, with EUR/CHF dipping 0.08% to hit 1.2056.
Later in the day, Federal Reserve Bank of Chicago President Charles Evans was to speak. The Fed was also to publish its beige book, which looks at regional economic conditions.