On Wednesday the greenback climbed to its highest in two-weeks against the Swiss franc, as markets awaited the producer price report out of the United States amid renewed expectations that the Federal Reserve Bank will soon begin to taper its Quantitative Easing.
USD/CHF reached its highest point today at 0.9376 at 9:45 GMT, also the highest since August 2nd, after which consolidation followed at 0.9369. The pair was likely to receive support at August 2nd low, 0.9274, while resistance was to be encountered at July 12th high, 0.9416.
The ZEW institute reported earlier today that its index, gauging economic sentiment in Switzerland, improved for a second consecutive month in August. The indicator, reflecting economic expectations, regarding the development in the country during the next six months, advanced to a reading of 7.2 in August from 4.8 in July. Expectations pointed a transition to a moderate upward tendency, after remaining almost without change during the past three months.
A separate report revealed that Swiss index of producer and import prices remained flat in July on a monthly basis, while initial estimates showed a 0.2% increase, following the 0.1% uptick a month ago. Annually, the index rose by 0.5% during July in line with expectations, while in June it added 0.2%.
Meanwhile, the US dollar was continuously supported after on Tuesday the Department of Commerce said that retail sales in the United States rose by 0.2% in July, slowing down in comparison with June’s 0.6% increase, which was a revision up from 0.4% previously. Analysts had projected an increase by 0.3%. Core retail sales, which exclude automobile sales, rose by 0.5% in July compared to June, exceeding expectations of a 0.4% increase, after the revised up sales figure in June, when they increased a mere 0.1%.
Later on trading Wednesday the United States was expected to release data on producer price inflation.
Elsewhere, the Swiss franc was losing positions against the euro, as EUR/CHF cross added 0.27% for the day to trade at 1.2409 at 11:41 GMT. In addition, the franc was on negative territory against the sterling as well, with GBP/CHF pair advancing 0.67% on a daily basis to trade at 1.4513 at 11:42 GMT.
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