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Forex - USD/CHF near 5-month highs after KOF report, Fed ahead

Published 07/30/2014, 05:46 AM
Updated 07/30/2014, 05:46 AM
Dollar remains supported against Swiss franc

Investing.com - The U.S. dollar was trading near five-month highs against the Swiss franc on Wednesday, as disappointing Swiss data weighed on the franc while demand for the greenback remained supported ahead of the Federal Reserve's policy statement.

USD/CHF hit 0.9079 during European morning trade, the pair's highest since February; the pair subsequently consolidated at 0.9075, inching up 0.06%.

The pair was likely to find support at 0.9037, Tuesday's low and resistance at 0.9156.

Data showed that the KOF economic barometer for Switzerland ticked down to 98.1 in July, from a reading of 100.5 in June, whose figure was revised up from a previously estimated reading of 100.4.

Analysts had expected the index to rise to 101.0 this month.

The U.S. was to release the preliminary estimate on second quarter gross domestic product growth later Wednesday, which was to be followed by the conclusion Fed policy meeting.

Investors were also awaiting the U.S. nonfarm payrolls report for July on Friday.

Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.

The dollar has strengthened in recent sessions as economic data indicated that the recovery is gaining traction. A report by the Commerce Board on Tuesday showed that U.S. consumer confidence rose to the highest level in seven years this month.

The Swissie was flat against the euro, with EUR/CHF at 1.2162.

The single currency remained under heavy selling pressure amid concerns over the divergence in monetary policy between the European Central Bank and its major peers.

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