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Forex - USD/CHF almost unchanged, focus on central banks

Published 07/05/2012, 04:46 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar was almost unchanged against the Swiss franc in cautious trade on Thursday, as markets were jittery ahead of highly anticipated European Central Bank and Bank of England policy-setting meetings and the release of U.S. employment data.

USD/CHF hit 0.9600 during European morning trade, the daily high; the pair subsequently consolidated at 0.9594, to hit 0.06%.

The pair was likely to find support at 0.9542, the low of June 22 and resistance at 0.9649, the high of June 27.

The ECB was widely expected to announce an interest rate cut to 0.75% from the current record low 1.00% to help bolster growth in the region, following a recent string of weak economic data.

The ECB rate announcement was to be followed by a press conference with central bank head Mario Draghi to outline the reasons for the monetary policy decision and discuss the economic outlook for the euro area.

Investors were also looking ahead to the BoE’s policy meeting later Thursday, amid growing expectations for a fresh round of stimulus measures to shield the recession hit U.K. economy from the ongoing debt crisis in the euro zone.

Meanwhile, markets were eyeing Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.

The Swissie was also steady against the euro with EUR/CHF easing up 0.02%, to hit 1.2014.

Later Thursday, the U.S. was to publish a report by payroll processing firm ADP on non-farm employment change, followed by government data on unemployment claims. The Institute of Supply Management was also to release a report on U.S. service sector activity.


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