Forex - USD/CHF touches daily low on dovish Fed outlook

Published 11/16/2010, 04:37 AM
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EUR/CHF
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Investing.com – The U.S. dollar snapped 7-days of gains against the Swiss franc on Tuesday, slipping down to touch a daily low after officials from the Federal Reserve sounded a dovish note and defended the banks easing policy.

USD/CHF hit 0.9830 during European morning trade, the daily low; the pair subsequently consolidated at 0.9834, shedding 0.11%.

The pair was likely to find support at 0.9722, last Friday’s low and resistance at 0.9931, the high of November 2.

Earlier in the day, in an interview with The Wall Street Journal, Federal Reserve Vice Chairwoman Janet Yellen defended the Fed's November 3 decision to purchase USD600 billion more of U.S. Treasury bonds saying, "I see inflation lingering around current levels for a long time".

Yellen also stressed that the Fed was not trying to push down the value of the dollar, and added that she would not hesitate to take additional action, if needed.

Also Tuesday, New York Fed President William Dudley said the need to exit from current U.S. monetary policies could be "years away".

The Swissy was also up against the euro, with EUR/CHF gaining 0.06% to hit 1.3385.

Later in the day, the U.S. was to release official data on producer price inflation and industrial production, as well as a report on the capacity utilization rate.

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