Forex Pros – The U.S. dollar edged up to a three-week high against the Swiss franc on Wednesday, after China’s interest rate increase on Tuesday had a limited impact on the outlook for global growth going forward.
USD/CHF hit 0.9654 during European morning trade, the pair’s highest since January 21; the pair subsequently consolidated at 0.9639, easing up 0.08%.
The pair was likely to find support at 0.9522, Tuesday’s low and resiatance at 0.9686, the high of January 21.
The People’s Bank of China unexpectedly raised its benchmark interest rate for the third time since mid-October on Tuesday, as Beijing stepped up efforts to curb soaring inflation and ward off a property bubble.
The move by Chinese policymakers to rein in inflation and allow growth to continue at a more sustaninable pace was viewed in a positive light by markets, which until recently have tended to see any tightening in China as a danger to global growth.
The Swissie was also down against the euro, with EUR/CHF rising 0.2% to hit 1.3151.
Later in the day, the head of the U.S. Federal Reserve, Ben Bernanke was to testify before the Budget Committee in Washington.
ForexPros.com
