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COZfx: Dollar vs. Swiss Franc near 5-month highs


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COZforex: The US dollar was almost unchanged against the Swiss franc on Thursday, hovering close to 5 month highs as Wednesday's upbeat US data continued to support the greenback.

USD/CHF hit 0.9094 amid late European morning trade, the session high; the pair subsequently consolidated at 0.9091, inching up 0.04%. COZFX strategist Nigel Boynton said, USD/CHF is predicted to find support at 0.9063, and a drop through could take it to the next support line of 0.9043. Meanwhile, the pair is predicted to find its first resistance at 0.9106, and a rise through could take it to the next resistance line of 0.9129.

In economic news, the KOF economic barometer in Switzerland eased unexpectedly to a level of 98.1 compared to a reading of 100.5 in the previous month, though market expectations for it were to rise to 101.0. On the other hand, UBS consumption indicator climbed to 2.06 in June. It had recorded a revised reading of 1.80 in the previous month.

The dollar strengthened broadly on Wednesday after official data showed that US gross domestic product expanded at an annual rate of 4.0% in the 3 months to June, outstripping forecasts of 3.0%.

In addition, the contraction in the first quarter was revised to 2.1% from a previously reported 2.9% contraction.

But the greenback's gains were held in check after the Federal Reserve's latest rate statement said that considerable slack still remains in the labor market, despite the recent improvement in jobs growth, and that rates will remain on hold for longer.

(COZ forex UK)

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