Forex - USD/CHF almost unchanged, near 1-year highs

Shutterstock photo
Shutterstock photo

Shutterstock photo - - The U.S. dollar was almost unchanged against the Swiss franc on Tuesday, trading close to one-year highs as hopes the Federal Reserve will raise interest rates sooner than expected continued to support the greenback.

USD/CHF hit 0.9380 during European late morning trade, the pair's highest since September 2013; the pair subsequently consolidated at 0.9356, inching up 0.01%.

The pair was likely to find support at 0.9302, Monday's low and resistance at 0.9455.

The dollar was boosted after a study by the San Francisco Fed published on Monday indicated that Fed officials see rates rising earlier than markets expect.

The greenback has strengthened in recent weeks amid expectations that the Fed may announce a rate increase earlier than expected after economic data indicated that the recovery in the U.S. is progressing strongly.

The dollar's rally paused on Friday after the latest U.S. employment report showed that the rate of jobs growth slowed in August, before shrugging off the data and resuming its run higher.

The Fed is expected to wind up its asset purchase program in October and to start raising interest rates sometime in mid-2015. In contrast, the European and Japanese central banks look likely to stick to a looser monetary policy stance.

The Swissie was steady against the euro, with EUR/CHF dipping 0.04% to 1.2059.

The single currency remained under pressure after the European Central Bank cut rates to record lows across the euro zone late last week and announced fresh stimulus measures in an attempt to shore up slowing growth and inflation in the region.

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