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Forex - USD/CHF slips as Fed stimulus concerns weigh

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Forexpros - The U.S. dollar was lower against the Swiss franc on Wednesday, as the prospect of a fresh round of economic stimulus measures by the Federal Reserve weighed on the greenback.

USD/CHF hit 0.7886 during European late morning trade, the daily low; the pair subsequently consolidated at 0.7893, shedding 0.36%.

The pair was likely to find support at 0.7768, the low of August 16 and short-term resistance at 0.7988, the high of August 18.

The dollar weakened broadly amid speculation that Fed Chairman Ben Bernanke could indicate that further monetary easing may be necessary when he speaks at an economic symposium in Jackson Hole, Wyoming, later in the week.

But the greenback remained supported amid concerns over of a fresh bout of measures by the Swiss National Bank to weaken the franc.

The Swissie was also higher against the euro, with EUR/CHF shedding 0.31% to hit 1.1407.

Earlier in the day, official data showed that euro zone industrial orders fell unexpectedly in June, posting the sharpest monthly fall since September 2010.

A separate report showed that the Ifo Institute's index of German business climate fell to a 14-month low this month.

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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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