Forex - USD/CHF lower but remains supported

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Investing.com - The U.S. dollar was lower against the Swiss franc on Wednesday, although sustained expectations for the Federal Reserve to scale back its asset-purchasing program continued to lend support to the greenback.

USD/CHF hit 0.9690 during European morning trade, the session low; the pair subsequently consolidated at 0.9707, retreating 0.64%.

The pair was likely to find support at 0.9656, the low of May 21 and resistance at 0.9790, the session high.

The greenback remained supported after data on Tuesday showed that U.S. consumer confidence rose to the highest level since February 2008 in the current month.

The Conference Board said its index of consumer confidence rose to 76.2 in May from 69.0 in April and beating expectations for a reading of 71.0.

A separate report showed that the Case-Shiller U.S. home price index rose 10.9% in March from a year earlier, the biggest increase since April 2006.

The strong data boosted expectations that the Fed will wind down its USD85 billion-a-month asset purchase program later this year.

The Swissie was higher against the euro with EUR/CHF declining 0.38%, to hit 1.2513.

Also Wednesday, official data showed that the number of people out of work in Germany rose by 21,000 in May, much more than the 5,000 increase expected. Germany's unemployment rate was unchanged at 6.9%, in line with expectations.


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This article appears in: Investing , Forex and Currencies

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