Forexpros – The U.S. dollar was trading in a narrow range against the Swiss franc in quiet trade on Monday, as the dollar remained broadly supported by the view that the U.S. economic outlook is improving.
USD/CHF hit 0.9178 during European morning trade, the session high; the pair subsequently consolidated at 0.9162, easing up 0.07%.
The pair was likely to find short-term support at 0.9139, the low of March 13 and resistance at 0.9201, the high of March 7.
The dollar fell sharply against the Swiss franc on Friday, after U.S. industrial production numbers came in unexpectedly flat in February, while the University of Michigan’s consumer confidence index also disappointed.
Also Friday, official data showed that U.S. consumer price inflation rose 0.4% in February, in line with expectations, fueled largely by pricier gasoline, but the data gave little indication that underlying inflation is building.
But the greenback remained supported after the Federal Reserve upgraded its outlook on the economy and acknowledged the recent improvement in the labor market last week.
The Swissie was steady against the euro, with EUR/CHF inching up 0.01% to hit 1.2064.
Last week, Swiss National Bank policymakers left the minimum exchange rate floor of 1.20 per euro unchanged and reiterated its pledge to defend the level with the “upmost determination”.
The exchange rate cap was introduced last September as the appreciation of the Swiss franc undermined exports and increased the risk of deflation.
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