Forex Pros — The Swiss franc pulled back from a record high against the U.S. dollar on Tuesday, after official data showed that the Swiss economy grew more-slowly-than-expected in the first quarter.
USD/CHF pulled back from 0.8466, the pair’s lowest since Friday, to hit 0.8502 during European morning trade, still down 0.20% on the day.
Low and the pair’s all-time low and resistance at 0.8662, Friday’s high.
Earlier in the day, the Swiss State Secretariat for Economic Affairs said gross domestic product grew by 0.3% in the first quarter, compared with 0.8% in the previous three-month period and 2.4% on the year, from 3.1% in the fourth quarter.
Economists had expected GDP to increase by 0.6% on the quarter and 3.1% year-on-year.
Despite concerns over the record strength of the Swiss franc among Swiss National Bank policymakers exports remained robust in the first quarter, rising 0.57%.
The report attributed the drag on first quarter growth to a slowdown in the rate of domestic consumption which eased as the ongoing euro zone sovereign debt crisis and the events in Japan weighed on sentiment.
Meanwhile, the Swissy was down against the euro, with EUR/CHF climbing 0.63% to hit 1.2249.
Later Tuesday, the U.S. was to publish industry data on house price inflation and consumer confidence, as well as an index of manufacturing activity in the Chicago area.
ForexPros.com
