21 Aug 2013
USD/CHF is consolidating around 0.9190 area, up 0.14%
FXstreet.com (Athens) - On Tuesday USD/CHF fell to a two-month, as U.S. Treasury yields retreated and the timing of the Federal Reserve's reduction in its stimulus efforts remained uncertain.
USD/CHF will boost or fall apart after FOMC minutes?
Weakness in global stocks along with a selloff in emerging market currencies on fears of a Fed move next month have supported the ‘swissie’ .The dollar slid 0.8 percent to 0.9171 Swiss francs, hitting a trough of 0.9145, its weakest level since mid-June. A bit earlier data released on the Swiss side, indicating that the supply M3 in July was lower at 10.8% versus the 11.6%, on a yearly basis. What’s more, Swiss National Bank said ‘CHF stayed 11% overvalued in July’’. Generally, the Fed is going to release its FOMC meeting minutes from July 30-31 this today, and the market remains uncertain of the Fed’s QE tapering schedule. Meanwhile economists expected U.S existing home sales to reach 5.27 million from 5.08m units in June. On Thursday, a small increase to 322k from 320k is projected for U.S unemployment claims, while a small recovery is expected for Chinese manufacturing purchase manager’s index. Finally, on Friday a small decline to 492k is expected from 497k units for U.S new home sales. As the big event is approaching, risk-aversion is picking up, influencing the pair’s trend.
Technical outlook on USD/CHF
At the time of writing, the USD/CHF is trading at 0.9188, up 0.14% having moved off support at 0.9062. The FXstreet.com Trend Index shows the pair to be strongly bullish. Daily pivot point support can be found at 0.9107, 0.9085, 0.9062 and resistance at 0.9212, 0.9236, 0.9259, respectively.
USD/CHF will boost or fall apart after FOMC minutes?
Weakness in global stocks along with a selloff in emerging market currencies on fears of a Fed move next month have supported the ‘swissie’ .The dollar slid 0.8 percent to 0.9171 Swiss francs, hitting a trough of 0.9145, its weakest level since mid-June. A bit earlier data released on the Swiss side, indicating that the supply M3 in July was lower at 10.8% versus the 11.6%, on a yearly basis. What’s more, Swiss National Bank said ‘CHF stayed 11% overvalued in July’’. Generally, the Fed is going to release its FOMC meeting minutes from July 30-31 this today, and the market remains uncertain of the Fed’s QE tapering schedule. Meanwhile economists expected U.S existing home sales to reach 5.27 million from 5.08m units in June. On Thursday, a small increase to 322k from 320k is projected for U.S unemployment claims, while a small recovery is expected for Chinese manufacturing purchase manager’s index. Finally, on Friday a small decline to 492k is expected from 497k units for U.S new home sales. As the big event is approaching, risk-aversion is picking up, influencing the pair’s trend.
Technical outlook on USD/CHF
At the time of writing, the USD/CHF is trading at 0.9188, up 0.14% having moved off support at 0.9062. The FXstreet.com Trend Index shows the pair to be strongly bullish. Daily pivot point support can be found at 0.9107, 0.9085, 0.9062 and resistance at 0.9212, 0.9236, 0.9259, respectively.