Forexpros – The U.S. dollar pared gains against the Swiss franc on Thursday, pulling back from a six-month high amid growing caution ahead of a highly anticipated policy-setting meeting by the European Central Bank.
USD/CHF retreated from 0.9309 during early European afternoon trade, the pair’s highest since April 1 to hit 0.9231, still up 0.04%.
The pair was likely to find support at 0.9076, the low of October 3 and resistance at 0.9340, the high of April 1.
The ECB was widely expected to leave rates unchanged at 1.5%, amid concerns over consistently high inflation, despite calls for a rate cut to support faltering growth in the single currency bloc.
Earlier in the day, official data showed that German factory orders dropped unexpectedly in August; down for the second straight month, adding to concerns that the financial crisis in the euro zone is creating a drag on growth.
Elsewhere, official data showed that Swiss consumer price inflation rose more-than-expected in September, advancing 0.3% after a 0.3% drop the previous month.
Analysts had expected a flat reading for September.
Meanwhile, the Swissie was fractionally lower against the euro with EUR/CHF rising 0.15%, to hit 1.2342.
Later in the day, the U.S. Department of Labor was to release weekly data on unemployment claims.
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