Forex Pros – The euro rose to a two-day high against the Swiss franc on Thursday, boosted by expectations that the European Central Bank is set to pave the way for rate rises in the coming months.

EUR/CHF hit 1.2851 during European late morning trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.2840, gaining 0.28%.

The pair was likely to find support at 1.2754, Wednesday’s low and resistance at 1.2957, the high of February 22.

ECB head Jean-Claude Trichet was expected to underline the banks readiness to raise interest rates as price pressures increase, at a press conference after the central banks rate-setting meeting later in the day.

Earlier in the day, official data showed that euro zone retail sales rose 0.4% in January, slightly more than the expected 0.3% gain after dropping by 0.6% in December.

Separate reports showed that the euro zone’s services sector grew less than initially projected in February, while the euro zone’s economy grew in line with expectations during the fourth quarter of 2010.

Meanwhile, the euro was slightly lower against the yen, with EUR/JPY dipping 0.08% to hit 113.39.

Also Thursday, a government report showed that retail sales in Switzerland declined unexpectedly in January, dropping for the second consecutive month.

ForexPros.com
ForexPros.com