For the 24 hours to 23:00 GMT, the USD declined 0.15% against the CHF and closed at 0.8928, as the US economy shark more than market expectations for the first quarter of 2014.
On the economic front, the SNB, in its second-quarter quarterly bulletin, affirmed its monetary policy decision on 19 June 2014, of maintaining its minimum exchange rate of CHF1.20 per EUR, as the bank still perceived the Swiss Franc to be high at current level. Furthermore, citing a pickup in Switzerland’s first quarter economic growth, the central bank projected the economy to register a moderate pace of recovery in the coming quarters with a growth rate of around 2.0% for 2014. Separately, the UBS reported that its consumption indicator for the Swiss economy advanced to a reading of 1.77 in May, from a level of 1.68 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 0.8926, with the USD trading a tad lower from yesterday’s close.
The pair is expected to find support at 0.8907, and a fall through could take it to the next support level of 0.8888. The pair is expected to find its first resistance at 0.8946, and a rise through could take it to the next resistance level of 0.8966.
Amid a lack of major economic releases in Switzerland, during the later course of the day, traders would eye global economic news for further guidance in the currency pair.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.