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COZfx: USD/CHF trading higher on sustained Fed speculation


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COZforex: The US dollar was trading near one-and-a-half month highs against the Swiss franc on Tuesday as expectations for the Federal Reserve to soon scale back its stimulus program continued to support demand for the greenback.


USD/CHF hit 0.9679 amid European morning trade, the pair's highest since May 29; the pair subsequently consolidated at 0.9667, gaining 0.33%. COZFX strategist Nigel Boynton said, USD/CHF is predicted to find support at 0.9624, and a drop through could take it to the next support line of 0.9602. Meanwhile, the pair is predicted to find its first resistance at 0.9668, and a rose through could take it to the next resistance line of 0.9690.


On Swiss economic front, a non-seasonally adjusted basis, the unemployment rate declined to 2.9% in June from a rate of 3.0% recorded in May. On a seasonally adjusted basis, unemployment rate remained stable at 3.2% in June from the previous month. Furthermore, the industrial production climbed 3.0% in the Q1 2013, more than market expectation of a rose of 1.4%.


Meanwhile, official data showed that retail sales rise at an annual rate of 1.8% in May, down sharply from growth of 3.1% in April. Economists had expected Swiss retail sales to rise 1.9% in May.


Demand for the US dollar remained supported after data last week showed that the US economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists.


Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 if the economy picks up as the central bank expects.


Finance ministers from the European Union were to hold talks in Brussels later Tuesday.


(COZ forex UK)

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