USD/CHF slightly lower after slowing down Swiss retail sales

US dollar was trading on negative territory against the Swiss franc on Monday, following a report to show Swiss retail sales sharply slowed down in July, while the greenbacks demand was still pressured by the disappointing US non-farm payrolls data, that came out last Friday.

USD/CHF slipped to a session low at 0.9364 at 9:40 GMT, after which consolidation followed at 0.9369, decreasing 0.05% for the day. Support was to be received at September 2nd low, 0.9314, while resistance was to be met at September 6th high, 0.9456, also the pairs highest point in almost two months.

Earlier on Monday a report showed that Swiss retail sales registered a climb in the month of July, but the rate of increase was sharply lower. Sales increased by 0.8% in July on annual basis, after the recorded 2.3% rise during the preceding month. Retail sales, excluding fuel, rose by 0.6% in July 2013 compared to July 2012, after they climbed 2.2% in June. Sales of food, soft drinks and tobacco rose by 0.3% in July annually, while sales, that exclude food and fuel, also increased by 0.3% during the same period.

Meanwhile, the US dollar came under selling pressure on Friday, after the Bureau of Labor Statistics reported that US employers added 169 000 new jobs in the month of August, following the revised down 104 000 jobs in July from 162 000 previously. The official report said that non-farm payrolls in the US have initially been revised down by a total of 74 000 during June and July. US unemployment rate diminished to 7.3% during August from 7.4% a month ago. These data points introduced a new dose of uncertainty over the future of Federal Reserve’s stimulus program.

In addition, concerns over a possible military operation in Syria were still present, after during the weekend Syrian President Bashar al-Assad denied to have authorized a chemical weapon use on Syrian civilians. Markets awaited the decision by the US Congress over a possible military strike. At G-20 meeting in Saint Petersburg last week no agreements on this matter have been reached. However, US Congress is about to decide whether to support Barack Obamas plan to commence an assault on Syrian targets. President Obama said that he will take a statement in front of the US nation on Tuesday.

Elsewhere, the Swiss franc was steady against the euro, with EUR/CHF cross gaining a mere 0.02% on a daily basis to trade at 1.2362 at 11:08 GMT. It became clear today that SENTIX Investor Confidence in the Euro zone entered positive territory for the first time in over two years in September, as investors seemed to support euro zones recessionary period exit. The index of confidence among investors in the bloc climbed to +6.5 in September, marking its highest point since May 2011, while it showed -4.9 in August. Preliminary estimates were exceeded, as the index came in on positive territory for the first time since July 2011.