Forex Pros – The U.S. dollar re-approached its all-time low against the safe haven Swiss franc on Wednesday, amid concerns that a rebound in oil prices, fuelled by ongoing unrest in the Middle East, would derail the global economic recovery.
USD/CHF hit 0.9258 during European morning trade, the pair’s lowest since Friday; the pair subsequently consolidated at 0.9260, shedding 0.29%.
The pair was likely to find support at 0.9227, Friday’s low and the pair’s all-time low and resistance at 0.9320, Tuesday’s high.
Crude futures for delivery in April were trading at USD99.94 a barrel on the New York Mercantile Exchange, after peaking at USD100.57 earlier, amid concerns over ongoing violence in Libya and protests in Bahrain, Iran and Yemen.
On Tuesday, Federal Reserve Chairman Ben Bernanke that the recent surge in oil prices was unlikely to hurt the U.S. economy, unless it was sustained.
Also Tuesday, Swiss Chief Economist Aymo Brunetti said the country’s economy was in a very favorable position, but the strength of the Swiss franc still posed a threat to the export sector.
Meanwhile, the Swissie was slightly lower against the euro, with EUR/CHF easing up 0.08% to hit 1.2801.
Later Wednesday, Federal Reserve Chairman Ben Bernanke was to testify for a second day before the Senate Banking Committee in Washington, while the Fed was to publish its Beige Book. The U.S. was also to publish data on private sector payrolls compiled by payroll processing firm ADP.
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