USDCHF Movement
For the 24 hours to 23:00 GMT, USD declined 0.06% against the CHF and closed at 0.9544.
Yesterday, Swiss National Bank Chairman, Thomas Jordan, stated that the bank would continue to do everything in its power to enforce cap on the Swiss Franc as a rise in the currency would pose a major threat to the economy and heighten the risk of deflation.
On the Swiss economic front, SVME-Purchasing Managers Index fell to 46.7 in August from a reading of 48.6 in the previous month. Market had expected PMI to rise to 49.1. Additionally, retail sales rose 3.2% (YoY) in July compared to a revised 3.3% rise in June.
In the Asian session, at GMT0300, the pair is trading at 0.9518, with the USD trading 0.27% lower from yesterday’s close.
The pair is expected to find support at 0.9498, and a fall through could take it to the next support level of 0.9479. The pair is expected to find its first resistance at 0.9548, and a rise through could take it to the next resistance level of 0.9579.
Trading trends in the pair today are expected to be determined by the release of Swiss gross domestic product which is expected to show a 0.2% (QoQ) rise in the second quarter of 2012.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
