Forex Pros – The U.S. dollar was higher against the Swiss franc on Wednesday, as markets remained focused on a parliamentary confidence-vote win by Greece’s government as well as the conclusion of the Federal Reserve’s policy committee meeting.
USD/CHF hit 0.8432 during European morning trade, the daily high; the pair subsequently consolidated at 0.8423, climbing 0.2%.
The pair was likely to find support at 0.8346, the low of June 14 and resistance at 0.8515, the high of June 20.
Greece’s parliament supported Prime Minister George Papandreou’s new cabinet on Tuesday, wining the support of 155 out of 300 parliament members.
However, markets remained cautious as Greek lawmakers still need to support next week’s vote on new austerity measures, which include harsh spending cuts and new taxes over the next five years.
Meanwhile, markets focused on the Federal Reserve’s policy setting meeting, which was to be followed with a press conference by Fed Chairman Ben Bernanke later in the day.
Mr. Bernanke was widely expected to reaffirm the bank’s pledge to hold interest rates near zero for an extended period, while investors will watch for clues regarding the current round of quantitative easing, which was due to end on June 30.
Elsewhere, the Swissie was up against the euro, with EUR/CHF sliding 0.19% to hit 1.2092.
Earlier Wednesday, a report showed that Swiss investor confidence dropped sharply in June, as the ongoing euro zone debt crisis and the stronger franc weighed.
The ZEW Center for European Economic Research said its index of investor expectations plunged 12.8 points to minus 24.3 from minus 11.5 in May.
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