Forex Pros – The U.S. dollar trimmed gains against the Swiss franc on Thursday, pulling back from a two-day high after the Federal Reserve cut its outlook for growth and concerns over Greece’s sovereign debt crisis continued to simmer.
USD/CHF pulled away from 0.8437, the pai’s highest since Tuesday, to hit 0.8405 during European morning trade, still up 0.10% on the day.
The pair was likely to find support at 0.8325, the low of June 7 and the pair’s all-time low and resistance at 0.8550, the high of June 15.
On Wednesday, the Fed cut its cut its 2011 economic growth forecast for the U.S. to a range of 2.7% to 2.9%, down from a previous estimate of 3.1% to 3.3%. Policymakers also cut their outlook for growth in 2012 and raised estimates for unemployment.
The dollar remained supported after Fed Chairman Ben Bernanke confirmed the bank was winding up its monetary easing program at the end of the month and said further easing was unlikely.
Risk aversion remained elevated after European Central Bank President Jean-Claude Trichet said late Wednesday that risk signals for financial stability in the euro zone were flashing “red” and that the debt crisis was threatening to infect European lenders.
Meanwhile, the Swissie was up against the euro, with EUR/CHF shedding 0.46% to hit 1.1990.
Later Thursday, the U.S. was to publish government data on initial jobless claims, as well as official data on new home sales.
ForexPros.com
