Forex Pros – The U.S. dollar eased off a five-day low against the Swiss franc on Wednesday, but gains were limited after Tuesday’s disappointing U.S. economic data and amid lingering concerns over euro zone debt issues.
USD/CHF clawed back up from 0.8783, the pair’s lowest since May 11, to hit 0.8809 during European morning trade, inching up 0.10%.
The pair was likely to find support at 0.8705, the low of May 10 and resistance at 0.8937, the high of May 16.
Official data on Tuesday showed that U.S. housing starts and building permits fell in April, while factory output slumped, underlining the view that the Federal Reserve is likely to maintain its course of loose monetary policy for some time to come.
Separately Tuesday, Europe’s top financial officials acknowledged for the first time that Greece may have to restructure its debts.
Chief euro zone Finance Minister Jean-Claude Juncker said Greece could see a “soft restructuring”of its debt if Athens agreed to undertake major reforms and speed up plans to privatize state holdings.
The Swissie was also slightly lower against the euro, with EUR/CHF rising 0.15% to hit 1.2550.
Later in the day, the Federal Reserve was to publish the minutes of its April policy meeting.
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