Forex - USD/CHF edges lower, eyes on ECB meeting

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Investing.com - The U.S. dollar edged lower against the Swiss franc on Thursday, as market sentiment slightly improved ahead of the European Central Bank's monthly policy statement, later in the day.

USD/CHF hit 0.9454 during European morning trade, the session low; the pair subsequently consolidated at 0.9472, slipping 0.16%.

The pair was likely to find support at 0.9403, Wednesday's low and resistance at 0.9513, the high of November 13 and a two-month high.

The ECB was widely expected to leave rates on hold at 0.75%, but concerns over the economic outlook for the region fuelled speculation over the prospect of future rate cuts.

Euro zone growth concerns re-emerged after data on Wednesday confirmed that the euro zone economy contracted by 0.6% in the fourth quarter, in line with preliminary estimates and economists' forecasts.

The dollar remained supported however, after ADP nonfarm payrolls data on Wednesday showed that the U.S. private sector added 198,000 jobs in February, above expectations for an increase of 170,000.

The upbeat data fuelled optimism over a recovery in the U.S. labor market.

Earlier in the day, the Swiss National Bank said that foreign currency reserves fell to CHF427.7 billion from CHF429.5 billion the previous month.

The Swissie was lower against the euro with EUR/CHF rising 0.25%, to hit 1.2336.

Also Thursday, Spain's Treasury sold EUR2.435 billion worth of ten-year government bonds at an average yield of 4.917% earlier in the day, down from 5.202% at a previous auction.

Later in the day, the U.S. was to publish the weekly government report on initial jobless claims and official data on the trade balance.


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This article appears in: Investing , Forex and Currencies

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