4 Sep 2013
USD/CHF clouded on dismal US trade balance
FXstreet.com (Athens) - The USD/CHF was initially lost ground after the US trade deficit released worse than expected, but soon came back.
The USD/CHF didn’t alter much after the US trade deficit released widened in July
While the American dollar lost solid ground against most of its major counter-parts on worse trade balance data, it did not change much against the ‘Swissie’. Initially, traders might got baffled as the pair spiked downwards on the deteriorating US data, but quickly the pair re-gathered pace and came back again at the same trading area as of 0.9370. Rob Carnell from GLOBAL ECONOMICS ING FINMKT suggest that “The July US trade deficit worsened a little more than the consensus had expected in July, which will make it harder for net trade to provide the sort of boost to growth it gave to GDP in 2Q13. But from the perspective of the Fed taper question, this is really not a very significant. And… noise then, and little relevance for either FX or bond markets.”
At the time of writing the pair is trading at 0.9370, up 0.03%, nearly its daily highs (0.9383). The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at 0.9326, 0.9309, 0.9279 and resistance at 0.9397, 0.9419 and 0.9444, respectively.
The USD/CHF didn’t alter much after the US trade deficit released widened in July
While the American dollar lost solid ground against most of its major counter-parts on worse trade balance data, it did not change much against the ‘Swissie’. Initially, traders might got baffled as the pair spiked downwards on the deteriorating US data, but quickly the pair re-gathered pace and came back again at the same trading area as of 0.9370. Rob Carnell from GLOBAL ECONOMICS ING FINMKT suggest that “The July US trade deficit worsened a little more than the consensus had expected in July, which will make it harder for net trade to provide the sort of boost to growth it gave to GDP in 2Q13. But from the perspective of the Fed taper question, this is really not a very significant. And… noise then, and little relevance for either FX or bond markets.”
At the time of writing the pair is trading at 0.9370, up 0.03%, nearly its daily highs (0.9383). The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15 minutes chart. Daily pivot point support can be found at 0.9326, 0.9309, 0.9279 and resistance at 0.9397, 0.9419 and 0.9444, respectively.