Forex Pros – The U.S. dollar was rangebound against the Swiss franc on Wednesday, swinging between small gains and losses, ahead of a key Greek vote on adopting a national austerity package.
USD/CHF hit 0.8329 during European trade, the daily low; the pair subsequently consolidated at 0.8308, slipping 0.12%.
The pair was likely to find short-term support at 0.8274, Tuesday’s low and the pair’s all-time low and resistance at 0.8394.
Market sentiment was lifted by rising optimism that Greece’s parliament would approve an unpopular austerity plan later in the day. The plan needed to pass for the indebted nation to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.
In Switzerland, a report showed that the country’s KOF economic barometer fell in line with expectations this month, adding to concerns that the franc’s record gains are weighing on economic growth.
The KOF Swiss Economic Institute said its economic barometer, which aims to predict the economy’s direction about six months ahead, dropped to 2.23 from 2.30 in May.
Meanwhile, the Swissie was lower against the euro, with EUR/CHF easing up 0.15% to hit 1.1975.
Also Wednesday, the U.S. was to publish industry data on pending home sales.
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