Forex Pros – The U.S. dollar fell to a four-day low against the Swiss franc on Wednesday, after Swiss National Bank chairman Philipp Hildebrand said in a newspaper interview that inflationary pressures have increased.
USD/CHF hit 0.9616 during European morning trade, the pair’s lowest since February 10; the pair subsequently consolidated at 0.9624, shedding 0.48%.
The pair was likely to find support at 0.9573, the low of February 10 and resistance at 0.9729, Tuesday’s high.
Earlier in the day, Hildebrand said that while the strong Swiss franc was dampening rising inflation pressures from higher energy and food prices the bank would have to normalize interest rates if its latest inflation forecast materialized.
“The inflationary pressures have increased, that’s true,” he said. “But as they show up mainly through the development of prices for energy and agriculture commodities the Swiss franc is shielding Switzerland to a certain degree.”
The Swissie was also up against the euro, with EUR/CHF slipping 0.09% to hit 1.3029.
Later in the day, the U.S. was to publish official data on producer price inflation, as well as reports on building permits, housing starts and industrial production.
In addition, the Federal Reserve was to publish the minutes of its most recent monetary policy committee meeting.
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