USD/CHF off session lows

US dollar managed to erase earlier losses against the Swiss franc during the thin trade on Monday, as market participants were looking ahead to the Federal Open Market Committee (FOMC) FED meeting for clues, regarding interest rate decision, scheduled on Wednesday.

USD/CHF bounced off a session low and also a one-month low, recorded at 0.9269 at 10:29 GMT, to trade at 0.9305 at 12:29 GMT. Support was likely to be received in the range 0.9250-0.9270, while resistance was to be met in the zone 0.9325-0.9345.

Markets remained edgy, following the release of mixed economic data from the United States during last week. The Labor Department reported on Thursday that initial jobless claims in the United States rose by 7 000 to reach 343 000 during the week ended on July 20th 2013. Results during the preceding week were revised up to 336 000 from 334 000 previously. On the other hand, on Friday the University of Michigan reported that US consumer confidence index rose to a six-year high in July, advancing to a reading of 85.1 from 83.9 in June, exceeding preliminary estimates of a value of 84.0. All this fueled uncertainty over the future of FED’s stimulus program.

The Federal Open Market Committee (FOMC) was expected to announce its decision on interest rates, one of the three major instruments to determine monetary policy, on Wednesday.

Elsewhere, the franc traded lower against the euro, with EUR/CHF pair adding 0.14% to reach 1.2348 at 12:53 GMT. GBP/CHF cross was also on positive territory today, up by 0.10% to trade at 1.4302 at 12:54 GMT. Earlier today the Confederation of British Industry reported that its index of distributive trades advanced more than projected in July, showing a value of 17, while estimates pointed a value of 10. This indicator reflects short-term tendencies in the sectors of retail and wholesale trade in the United Kingdom, as both Bank of Englands and the governments economic policies are dependent on it.