Forex Pros – The U.S. dollar edged higher against the Swiss franc on Thursday, as concerns over the euro zone’s debt crisis and the chance that the European Central Bank would not point towards future rate hikes at its post-policy meeting press conference later in the day weighed on risk appetite.
USD/CHF hit 0.8419 during European morning trade, the daily high; the pair subsequently consolidated at 0.8417, gaining 0.29%.
The pair was likely to find support at 0.8302, the low of June 30 and resistance at 0.8505, the high of July 5.
The ECB was expected to hike its key lending rate to 1.5% from 1.25% at its policy setting meeting later Thursday, after the bank’s head Jean-Claude Trichet said last week that the bank was in “strong vigilance mode.”
In Switzerland, official data showed earlier that consumer price inflation declined in line with expectations last month.
The Federal Statistics Office said consumer prices rose at an annualized rate of 0.6% in June and were 0.2% lower compared with the previous month.
Analysts had forecast a year-on-year rise of 0.7% and a month-on-month fall of 0.1%.
The report said the monthly decline was due in large part to a 2.7% fall in oil products as well as the first price cuts in the summer sales for clothes and shoes which dipped 1.9%.
The Swissie was also lower against the euro, with EUR/CHF rising 0.16% to hit 1.2036.
Also Thursday, U.S. payroll processing firm ADP was to publish a report on non-farm payrolls. The U.S. was also to publish official data on initial jobless claims.
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