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Forex - USD/CHF higher on Fed minutes, U.S. data ahead

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Investing.com - The U.S. dollar was higher against the Swiss franc on Thursday, after the minutes of the Federal Reserve's latest meeting indicated that policymakers remain divided on when to start scaling back the bank's stimulus program.

USD/CHF hit 0.9250 during European morning trade, the pair's highest since August 19; the pair subsequently consolidated at 0.9265, gaining 0.44%.

The pair was likely to find support at 0.9163, Wednesday's low and resistance at 0.9348, the high of August 13.

The greenback found support after the minutes of the Fed's July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank's USD85 billion-a-month bond buying program.

However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.

The minutes described recent U.S. economic data as "mixed", indicating that plans to taper could be pushed back if the economy was to weaken.

The Swissie was lower against the euro with EUR/CHF adding 0.23%, to hit 1.2347.

Also Thursday, data showed that manufacturing activity in the euro zone expanded at the fastest pace in 26 months in August.

The flash euro zone manufacturing purchasing managers' index rose to 51.3 from a final reading of 50.3 in July. Analysts had expected the index to inch up to 50.8.

Meanwhile, the flash euro zone services PMI rose to a 24-month high of 51.0 from 49.8 in July, better than expectations for a reading of 50.2.

Germany's manufacturing PMI rose to a 25 month high of 52.0, while the country's services PMI rose to a six-month high of 52.4.

Later in the day, the U.S. was to publish a report on initial jobless claims.

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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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