US dollar traded close to three-week lows against the Swiss franc on Wednesday, as investors were expecting the congressional testimony by FED Chairman Ben Bernanke, scheduled later today.
USD/CHF slid to a session low at 0.9376 at 9:40 GMT, after which consolidation followed at 0.9405. Support was expected at June 25th low, 0.9320, while resistance was to be met at July 16th high, 0.9494.
Market players positioned ahead of the semi-annual testimony by Ben Bernanke amid speculation, regarding the timing of a possible scale back to the Federal Reserve Bank’s Quantitative Easing. Bernanke was expected to reiterate that the central bank could begin tapering its bond purchases by the end of this year, in case US economy continues to revitalize and meets policymakers’ goals.
Meanwhile, Economic Sentiment in Switzerland improved slightly in July, according to official data by the ZEW institute and Credit Suisse. Economic sentiment index rose to 4.8 in July from 2.2 in June. The indicator, which shows financial analysts expectations of Swiss economic development in the next six months, remained relatively unchanged over the past three months. On the other hand, the indicator to reflect current situation showed a significant improvement in July, climbing by 4.5 to reach a value of 26.5.
Elsewhere, the Swiss franc traded higher against the euro, as EUR/CHF cross decreased by 0.19% to 1.2341.
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