US dollar traded lower against the Swiss franc on Thursday, as the dovish nature of the comments by FED Chairman Bernanke led to a broad decline for the greenback yesterday.
USD/CHF pair tumbled to a session low at 0.9404 at 22:50 GMT on Wednesday. At 11:31 GMT the cross was trading at 0.9504, still down by 0.86% for the day. Support was likely to be received at June 26th low, 0.9373, while resistance was to be met at July 4th high, 0.9584.
US dollar took a sharp fall against its major peers after on July 10th Federal Reserve Bank Chairman Ben Bernanke said, that central bank’s policy should remain accommodative, even after the minutes of FED’s June meeting revealed that there were debates, regarding a possible exit to the stimulus program. According to FED minutes, half of the 19 members of FOMC voted in favor of terminating monthly asset purchases by the end of this year. At the same time some of the policymakers expected to see a more resilient increase in US employment before initiating a reduction of scale of stimulus. The greenback has been through almost one month of rallying against the other major currencies after Ben Bernankes speech, following FEDs meeting on June 19th, when he said that the bank intended to scale back Quantitative Easing by the end of 2013, if economic conditions in the United States were to meet FEDs objectives.
Meanwhile, the Swiss franc advanced against the euro, with EUR/CHF pair erasing 0.20% to fall to 1.2417 at 11:43 GMT. In addition, GBP/CHF cross was also on lower levels, loosing 0.17% for the day, trading at 1.4368 at 14:44 GMT.
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