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Forex - USD/CHF slips lower in risk-on trade

Published 04/11/2013, 05:46 AM
Updated 04/11/2013, 05:49 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar slipped lower against the Swiss franc on Thursday, as sentiment remained supported by the Bank of Japan's aggressive monetary easing steps.

USD/CHF hit 0.9310 during European morning trade, the session low; the pair subsequently consolidated at 0.9314, edging down 0.12%.

The pair was likely to find support at 0.9280, the low of February 27 and resistance at 0.9366, the high of April 9.

Market sentiment has been supported since the BoJ unveiled a massive monetary stimulus program last week, aimed at beating deflation in the world’s third largest economy.

Investor confidence also strengthened after data on Thursday showed that China saw a large increase in bank lending in March, adding to signs of an economic recovery one day after trade data indicated that domestic demand remains strong.

Meanwhile, Wednesday’s minutes of the Federal Reserve’s most recent meeting showed that policymakers are still divided over about when to end its bond buying program.

The Fed minutes, which were inadvertently released ahead of schedule, showed that that a few policymakers saw quantitative easing tapering around midyear, while several others believed it would be appropriate to slow later in the year and to stop by the end of the year.

The impact of the minutes was muted as the meeting was held before nonfarm payrolls data showed that the U.S. economy added far fewer than expected jobs in March.

The Swissie was steady against the euro with EUR/CHF inching 0.01% higher, to hit 1.2190.

Later in the day, the U.S. was to publish the weekly government report on initial jobless claims and data on import prices.


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