Forexpros — The U.S. dollar tumbled to a four-day low against the Swiss franc on Thursday, as concerns over the outlook for global growth mounted after the release of worse than expected manufacturing data from the euro zone and the U.K.
USD/CHF hit 0.7962 during European morning trade, the pair’s lowest since August 26; the pair subsequently consolidated at 0.7996, falling 0.76%.
The pair was likely to find support at 0.7873, the low of August 24 and resistance at 0.8208, Wednesday’s high.
The euro zone’s manufacturing purchasing managers’ index fell to it lowest level since August 2009 last month, dropping to 49.0 from a preliminary reading of 49.7.
Meanwhile, Germany’s manufacturing PMI slowed to its lowest level since September 2009, slumping to 50.9, well below an initial estimate of 52.0.
National PMI’s from Ireland, France, Italy, Spain and Greece also contracted.
Also Thursday, data showed that manufacturing activity in the U.K. fell unexpectedly in August, dropping to the lowest level since May 2009.
But the dollar remained supported ahead of the release of U.S. manufacturing data later in the day, after a report on Wednesday showed that the Chicago PMI rose more-than-expected in August.
The Swiss franc posted steep gains against the dollar and the euro on Wednesday after the country’s economy minister said the country would have to live with the strong franc.
Earlier Thursday, government data showed that Switzerland’s manufacturing PMI rose more-than-expected in August, while a separate report showed that the country’s gross domestic product rose in line with expectations in the second quarter.
The Swissie was also sharply higher against the euro, with EUR/CHF tumbling 1.47% to hit 1.1410.
Later in the day, the U.S. was to publish its closely watched weekly report on initial jobless claims, while the U.S. Institute of Supply Management was to produce data on manufacturing growth.
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