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Forex - USD/CHF hits 14-week low after U.S. Fed cuts growth forecast

Published 07/15/2010, 05:53 AM
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Investing.com – The U.S. dollar tumbled to a 14-week low against the Swiss franc on Thursday, after the U.S. Federal Reserve said that the economic outlook for the U.S. has "softened".

USD/CHF hit 1.0463 during European morning trade, the pairs lowest since April 1; the pair subsequently consolidated at 1.0487, shedding 39%.

The pair was likely to find short-term support at 1.0434, the low of April 1, and resistance at 1.0675, the high of July 12.

Late Wednesday, the minutes of the most recent meeting of the U.S. Federal Reserve monetary policy committee were released and indicated that members were concerned about ongoing high unemployment and a slowdown in inflation.

The minutes also said that most FOMC policy makers expected that the U.S. might not return to its long-term rates of economic growth, unemployment and inflation for as long as six years.

Last month the Fed reiterated a pledge to keep the benchmark lending rate at around zero for “an extended period”.

Meanwhile, the Swissy was down against the euro, with EUR/CHF gaining 0.06% to hit 1.3404.

Earlier Thursday, the Centre for European Economic Research (ZEW) said economic sentiment in Switzerland declined for the third month in July, down to 2.2, after declining to 17.5 in June.

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