Investing.com – The U.S. dollar was up against the Swiss franc on Thursday, trading close to a three-and-a-half month high after the franc dropped more than 8% on Tuesday when Switzerland took action to cap the franc’s exchange rate against the euro.
USD/CHF hit 0.8652 during European morning trade, the pair’s highest since May 27; the pair subsequently consolidated at 0.8626, rising 0.61%.
The pair was likely to find support at 0.8537, Wednesday’s low and resistance at 0.8732, the high of May 26.
Tuesday’s announcement by the Swiss National Bank came after a month long campaign to weaken the franc failed to stem safe haven inflows into the currency, as concerns over the outlook for global growth mounted.
The SNB said it would no longer tolerate an exchange rate below 1.20 francs to the euro and would defend that level by buying other currencies in “unlimited quantities.”
The dollar remained supported amid concerns that the European Central Bank would signal a pause in its monetary tightening policy after its rate-setting meeting later in the day.
The Swissie was also lower against the euro, with EUR/CHF rising 0.41% to hit 1.2137.
Also Thursday, the U.S. was to publish its weekly report on initial jobless claims, while Federal Reserve Chairman Ben Bernanke was to speak. In addition, U.S. President Barack Obama was to make a speech to Congress to propose new employment measures.
USD/CHF hit 0.8652 during European morning trade, the pair’s highest since May 27; the pair subsequently consolidated at 0.8626, rising 0.61%.
The pair was likely to find support at 0.8537, Wednesday’s low and resistance at 0.8732, the high of May 26.
Tuesday’s announcement by the Swiss National Bank came after a month long campaign to weaken the franc failed to stem safe haven inflows into the currency, as concerns over the outlook for global growth mounted.
The SNB said it would no longer tolerate an exchange rate below 1.20 francs to the euro and would defend that level by buying other currencies in “unlimited quantities.”
The dollar remained supported amid concerns that the European Central Bank would signal a pause in its monetary tightening policy after its rate-setting meeting later in the day.
The Swissie was also lower against the euro, with EUR/CHF rising 0.41% to hit 1.2137.
Also Thursday, the U.S. was to publish its weekly report on initial jobless claims, while Federal Reserve Chairman Ben Bernanke was to speak. In addition, U.S. President Barack Obama was to make a speech to Congress to propose new employment measures.