Forex – USD/CHF rises on weak Swiss data, Yellen

0 – The U.S. dollar rose against the Swiss franc on Wednesday, as downbeat Swiss data weighed on demand for the franc, while Federal Reserve Chairwoman Janet Yellen’s comments on Tuesday continued to support the greenback.

USD/CHF hit 0.8983 during European early afternoon trade, the pair’s highest since June 18; the pair subsequently consolidated at 0.8983, gaining 0.29%.

The pair was likely to find support at 0.8940, the low of July 6 and resistance at 0.9005, the high of June 17.

In a report, the ZEW Institute said its index for economic expectations in Switzerland fell to a one-and-a-half year low of 0.1 in June, from a reading of 4.8 the previous month. Analysts had expected the index to rise to 5.0 last month.

Meanwhile, the greenback remained supported after Ms. Yellen on Tuesday said interest rates could rise sooner if the labor market was to improve more quickly than expected. However, the Fed chair also said that if the economic recovery disappoints monetary policy would remain accommodative.

The remarks came during testimony to the Senate Banking Committee in Washington.

Ms. Yellen said the economy is continuing to improve but added that the recovery is not yet complete and reiterated that rates are likely to remain on hold for a considerable period after the bank’s quantitative easing program ends.

The Swissie was steady against the euro, with EUR/CHF inching up 0.02% to 1.2155.

Later in the day, the U.S. was to release reports on producer price inflation and industrial production. In addition, Fed Chair Janet Yellen Carney was to testify for the second day to the House financial committee.

Source By Breaking News Website | BreakingNews.WS