Forex - USD/CHF steady after Hildebrand resignation

Published 01/09/2012, 10:30 PM
Updated 01/09/2012, 10:32 PM
USD/CHF
-
EUR/CHF
-
GBP/CHF
-
Investing.com - The Swiss franc firmed against the dollar Tuesday in wake of Philippe Hildebrand's resignation as head of the Swiss Central Bank, as relief swept over markets that policies he put in place will likely stay.

USD/CHF hit 0.9488 Tuesday in Asian trading, down 0.09%, up from a session low of 0.9474 and off from a high of 0.9500.

The pair was likely to find support at 0.9474, Tuesday's earlier low, and resistance at 0.9584, Monday's high.

Hildebrand resigned as chairman of the Swiss Central Bank due to a controversy stemming from a currency trade allegedly carried out by his wife just before the bank set a exchange-rate limit on the franc against the euro.

Analysts didn't foresee major movements in the currency markets.

"I don't think this will make any difference to SNB policy per se. It's not going to lead to a serious challenge of the Swiss franc ceiling or anything like that," said Simon Derrick, head of currency research at Bank of New York Mellon, according to Reuters.

"It may be slightly counterintuitive, but it says you have a central bank you can trust and from that perspective it does make the Swiss franc marginally more attractive. But in the broader scheme of things we know the SNB is going to defend the ceiling and this just adds to the credibility."

Meanwhile, the Swiss franc was up against the euro and the pound, with EUR/CHF losing 0.08% to trade at 1.2113 and GBP/CHF falling 0.02% at 1.4676.

In the U.K. later Tuesday, the British Retail Consortium is to release retail sales data.

The U.K. will also report on industry data on house price balance, a key gauge of housing inflation.

The eurozone will unveil figures on French industrial production, a leading indicator of economic health as well.

In the U.S., FOMC members John Williams and Sandra Pianalto are expected to speak.






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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.