Forexpros – The U.S. dollar was up against the Swiss franc on Tuesday, trading close to a five-week high as investors remained wary over the prospect of further measures to weaken the franc and as concerns over the outlook for global growth eased.
USD/CHF hit 0.8215 during European late morning trade, the daily high; the pair subsequently consolidated at 0.8213, gaining 0.68%.
The pair was likely to find support at 0.8067, Monday’s low and short-term resistance at 0.8241, Monday’s high and a five-week high.
The Swissie has fallen against the dollar in the two weeks since the Swiss National Bank cut interest rates to zero, as part of an effort to curb the appreciation of what it called the “massively overvalued” franc.
Meanwhile, fears over the U.S. economic outlook were soothed after Federal Reserve Chairman Ben Bernanke said Friday that there was no need for an immediate round of additional economic stimulus but left options open.
Earlier Tuesday, data showed that Switzerland’s UBS consumption indicator declined in July, falling to its lowest level since December 2009, amid ongoing concerns over the euro zone debt crisis and the global economic outlook.
UBS said its consumption indicator fell to 1.29 in July, after declining to an upwardly revised 1.52 the previous month.
The Swissie was almost unchanged against the euro, with EUR/CHF dipping 0.02% to hit 1.1835.
Later in the day, the U.S. was to release data on consumer confidence as well as an industry report on house price inflation. In addition, the Federal Reserve’s Open Market Committee was to publish the minutes of its August rate-setting meeting.
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