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Forex - USD/CHF close to record low after strong Swiss data

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Forex Pros - The U.S. dollar was testing support a record low against the Swiss franc on Wednesday, after official data showed that Swiss retail sales rose sharply in April while the manufacturing sector picked up in May.

USD/CHF hit 0.8471 during European morning trade, the daily low; the pair subsequently consolidated at 0.8478, tumbling 0.70%.

The pair was likely to find short-term support at 0.8461, the low of May 27 and the pair's all-time low and resistance at 0.8662, the high of the same day.

Earlier in the day, official data showed that retail sales rose 7.5% year-on-year in April, boosted by this year's late Easter, far more than the 1.9% gain forecast.

Meanwhile, the Swiss purchasing managers' index rose to a seasonally adjusted 59.2 in May, from 58.4 the previous month, confounding expectations for a dip to 57.6.

The reports came after data on Tuesday showed that Swiss economic growth slowed more than expected in the first quarter despite robust exports in the face of the record strong franc.

The Swissie was also up against the euro, with EUR/CHF shedding 0.61% to hit 1.2220.

Later Wednesday, U.S. payroll processing firm ADP was to publish its report on non-farm payrolls. Elsewhere, the U.S. Institute of Supply Management was to publish data on manufacturing activity.

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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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