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Forex - USD/CHF almost unchanged, ECB meeting in focus

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Investing.com - The U.S. dollar was almost unchanged against the Swiss franc on Wednesday, after the release of euro zone economic growth data, as investors remained cautious ahead of the European Central Bank's January policy meeting.

USD/CHF hit 0.9252 during European morning trade, the session high; the pair subsequently consolidated at 0.9247, edging up 0.05%.

The pair was likely to find support at 0.9202, Tuesday's low and resistance at 0.9287, the high of January 7.

Final data showed that the euro zone's gross domestic product shrank 0.1% in the July-to-September period, in line with expectations and unchanged from a preliminary estimate, confirming a recession.

The euro zone's economy shrank 0.2% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.

Meanwhile, the ECB was widely expected to hold off cutting rates at its policy-setting meeting on Thursday, but some market participants expected the bank to flag the possibility of rate cuts later in the year.

Investors also remained cautious amid concerns about continuing political wrangling in Washington over further budget cuts and raising the U.S. debt ceiling.

The Swissie was steady against the euro with EUR/CHF easing up 0.01%, to hit 1.2090.

Later in the day, the U.S. was to produce data on crude oil stockpiles.

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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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