Investing.com – The Swiss franc surged against the U.S. dollar and neared a record high versus the euro on Thursday, after the Swiss National Bank ditched a pledge to fight excessive appreciation of the Swissy versus the single European currency.
USD/CHF sank hit 1.1127 during European late morning trade, a 5-week low; the pair subsequently consolidated around 1.114, shedding a massive 1.52%.
The pair was likely to find short-term support at 1.1059, the low of May 12, and resistance at 1.1641, the high of June 8.
Earlier in the day, the SNB kept its benchmark interest rate on hold at 0.25% and revised up its 2010 growth forecasts for the Swiss economy. The move came after the SNB had been forced to step up foreign-currency purchases recently to counter the Swissy's gain, bolster exports and limit deflation risks, as Switzerland’s economy strengthened.
Meanwhile, the EUR/CHF shed 0.95% to reach 1.3791, close to the all-time low of June 9, 1.3733.
Later Thursday, the United States was due to publish key consumer price inflation data and a weekly report on initial jobless claims, an important indicator of overall economic health.
USD/CHF sank hit 1.1127 during European late morning trade, a 5-week low; the pair subsequently consolidated around 1.114, shedding a massive 1.52%.
The pair was likely to find short-term support at 1.1059, the low of May 12, and resistance at 1.1641, the high of June 8.
Earlier in the day, the SNB kept its benchmark interest rate on hold at 0.25% and revised up its 2010 growth forecasts for the Swiss economy. The move came after the SNB had been forced to step up foreign-currency purchases recently to counter the Swissy's gain, bolster exports and limit deflation risks, as Switzerland’s economy strengthened.
Meanwhile, the EUR/CHF shed 0.95% to reach 1.3791, close to the all-time low of June 9, 1.3733.
Later Thursday, the United States was due to publish key consumer price inflation data and a weekly report on initial jobless claims, an important indicator of overall economic health.