USDCHF Movement
For the 24 hours to 23:00 GMT, the USD declined marginally against the CHF and closed at 0.9695.
Yesterday, the International Monetary Fund in a report indicated that the Swiss National Bank needs to maintain its policy of defending its exchange-rate floor as it looks to avoid fresh inflows into the nation and battles deflationary trends. Moreover, it stated that introducing negative interest rates on banks’ excess deposits could help cool Switzerland’s real-estate market.
In the Asian session, at GMT0300, the pair is trading at 0.9693, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 0.9648, and a fall through could take it to the next support level of 0.9603. The pair is expected to find its first resistance at 0.9745, and a rise through could take it to the next resistance level of 0.9797.
In the absence of any major economic news in Switzerland, trading in the pair shall be largely affected by the much awaited Fed Chairman, Ben Bernanke’s testimony later today in the US.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
