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.
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.