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Forex - Dollar up but still close to record low against Swiss franc

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Forex Pros - The U.S. dollar inched higher against the Swiss franc on Wednesday, but remained close to Tuesday's all-time low, weighed by the view that the U.S. Federal Reserve is not likely to tighten policy for some time to come.

USD/CHF hit 0.8648 during European late morning trade, the daily high; the pair subsequently consolidated at 0.8621, easing up 0.10%.

The pair was likely to find short-term support at 0.8594, Tuesday's low and the all-time low and resistance at 0.8747, the high of April 29.

The Swiss franc has risen to a series of record highs against the dollar in recent months, as favorable Swiss economic conditions boosted expectations for policy tightening by the Swiss National Bank.

Markets brought forward expectations for a rate hike within the next three months on Friday after SNB Chairman Philipp Hildebrand said inflationary pressures were beginning to emerge due to rising oil and commodity prices.

Meanwhile, the Swissie was down against the euro, with EUR/CHF gaining 0.39% to hit 1.2819.

Later in the day, the U.S. was to publish data on ADP non-farm payrolls while the U.S. Institute for Supply Management was to publish its non-manufacturing PMI.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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