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Forex - USD/CHF slips lower ahead of U.S. jobless claims

Published 08/14/2014, 06:22 AM
Updated 08/14/2014, 06:22 AM
Dollar slips vs. Swissie as markets eye U.S. data

Investing.com - The U.S. dollar was lower against the Swiss franc on Thursday, after Swiss producer price inflation came out in line with market expectations and as investors awaited the release of U.S. jobless claims data later in the day.

USD/CHF hit 0.9046 during European early afternoon trade, the session low; the pair subsequently consolidated at 0.9062, slipping 0.14%.

The pair was likely to find support at 0.9018, the low of July 25 and resistance at 0.9098, Wednesday's high.

Official data showed that Switzerland's producer price inflation was flat last month, in line with expectations and following a flat reading the previous month.

Year-on-year, Switzerland's PPI slipped 0.8% in July from a year earlier, compared to expectations for a 0.9% decline, after a 0.8% fall in June.

Meanwhile, sentiment on the dollar remained vulnerable after the Commerce Department reported on Wednesday that U.S. retail sales were flat last month, disappointing expectations for a 0.2% increase.

The Swissie was steady against the euro, with EUR/CHF dipping 0.06% to 1.2121.

The euro showed little reaction after preliminary data showed that euro zone gross domestic product failed to grow in the three months to June. Economists had expected a small expansion of 0.1%.

Germany’s economy shrank by 0.2% in the three month to June, the first drop since 2012 and worse than forecasts for a contraction of 0.1%, while France's GDP was flat in the second quarter, marking the second consecutive quarter of stagnation.

The weak data indicated that the economic recovery in the euro area is losing momentum, adding to pressure on the European Central Bank to do more to bolster growth after it cut rates to record lows in June.

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A separate report showed that the annual rate of euro area inflation came in at 0.4% in July, in line with forecasts and unchanged from the preliminary estimate.

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