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Forex - USD/CHF edges lower, but hovers near 2-month highs

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Investing.com - The U.S. dollar edged lower against the Swiss franc on Thursday, but remained within close range of two-month highs, as concerns over Cyprus's recent bailout deal and political instability in Italy continued to dominate market sentiment.

USD/CHF hit 0.9514 during European morning trade, the session low; the pair subsequently consolidated at 0.9532, slipping 0.08%.

The pair was likely to find support at 0.9478, Wednesday's low and resistance at 0.9568, the high of March 14 and a multi-month high.

Demand for the safe haven greenback continued to be underpinned as banks in Cyprus prepared to open for the first time in almost two weeks, with capital controls in place to prevent a run on banks.

Meanwhile, in Italy, doubts continued over whether a stable coalition government could be formed, fuelling concerns that the country may have to go back to the polls.

The Swissie was almost unchanged against the euro with EUR/CHF dipping 0.01%, to hit 1.2189.

Also Thursday, official data showed that the number of unemployed people in Germany rose by 13,000 in February, disappointing expectations for a decline of 4,000, after a 3,000 fall the previous month.

A separate report showed that German retail sales rose unexpectedly in February, ticking up 0.4% after a 3% rise the previous month. Analysts had expected retail sales to fall 0.1% last month.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims as well as revised data on fourth quarter economic growth.

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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.

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