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Forex - USD/CHF rises ahead of central bank meetings

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Investing.com - The U.S. dollar rose against the Swiss franc on Wednesday, to trade close to a three-and-a-half month high as investors remained cautious ahead of a series of central bank meetings this week.

USD/CHF hit 0.9452 during European morning trade, the pair's highest since March 1; the pair subsequently consolidated at 0.9445, advancing 0.38%.

The pair was likely to find support at 0.9394, Tuesday's low and resistance at 0.9463, the high of March 1 and a three-and-a-half month high.

Overall sentiment was buoyed by prospects for ongoing monetary easing by the Federal Reserve and the Bank of Japan, as well as signs that the economic recovery in the U.S. is gaining momentum.

But investors remained cautious ahead of meetings by the Bank of Japan, the European Central Bank and the Bank of England on Thursday and U.S. data on nonfarm payrolls on Friday.

Concerns over political uncertainty in Italy also continued to linger, amid reports that Italian President Giorgio Napolitano is considering appointing a technocratic government after elections last month ended in a stalemate.

The Swissie was lower against the euro with EUR/CHF rising 0.23%, to hit 1.2308.

Also Wednesday, Eurostat said that the euro zone's gross domestic product shrank 0.6% in the September-to-December period, in line with expectations and unchanged from a preliminary estimate.

The data confirmed a deepening recession in the single currency bloc.

Later in the day, the U.S. was to publish a report on ADP nonfarm payrolls and official data on factory orders.

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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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