USDCHF Movement
For the 24 hours to 23:00 GMT, USD declined 0.06% against the CHF and closed at 0.9112.
Swiss Franc rose after reports indicated more than expected rise in the Swiss industrial production.
On the economic front, industrial production in Switzerland decreased 1.4% (YoY) in the fourth quarter of 2011 (4Q FY2011), compared to a revised 1.9% decline recorded in 3Q FY2011. Market had expected annual industrial output to drop 2.0% YoY in 4Q FY2011. However, on a quarterly basis, Swiss industrial production jumped 7.9% in 4Q FY2011, following a 1.4% fall in the previous quarter. Market had expected quarterly industrial production to grow 0.4% in 4Q FY2011.
Separately, the International Monetary Fund stated that introducing the cap on the Franc had been appropriate, given the currency’s rapid appreciation, but added that the ceiling on the Franc should not be permanent. It stressed that Switzerland should again allow its currency to trade freely once deflationary pressures ease and growth picks up.
In the Asian session, at GMT0400, the pair is trading at 0.9093, with the USD trading 0.21% lower from yesterday’s close.
The pair is expected to find support at 0.9065, and a fall through could take it to the next support level of 0.9036. The pair is expected to find its first resistance at 0.9138, and a rise through could take it to the next resistance level of 0.9182.
Trading trends in the pair today are expected to be determined by the release of money supply data in Switzerland.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
