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COZfx: USD/CHF weekly outlook

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COZfx: USD/CHF weekly outlook

Postby dwang » Mon May 12, 2014 2:00 am

COZforex: The dollar rise to a 1 month high against the Swiss franc on Friday, recovering from lows hit earlier in the week in the wake of dovish comments by Federal Reserve Chair Janet Yellen.

USD/CHF ended Friday’s session at 0.8862, 0.62% higher for the day and extending the week’s gains to 0.95%. COZforex senior currency strategist Ian • Quigley said, USD/CHF is predicted to find support at 0.8736, and a drop through could take it to the next support line of 0.8664. Meanwhile, the pair is predicted to find its first resistance at 0.8847, and a rise through could take it to the next resistance line of 0.8886.

The dollar gained ground as concerns over the crisis in Ukraine eased but investors remained cautious ahead of a weekend referendum by pro-Russian separatists in Ukraine's two eastern regions, which has been condemned by Ukraine’s government and the West. The dollar declined to the weakest level since early April against the Swissy earlier in the week after Fed Chair Janet Yellen said a high degree of monetary accommodation remains warranted given the slack in the US economy.

The comments came amid testimony to the Joint Economic Committee of Congress. Elsewhere, the Swiss National Bank said Wednesday that its foreign currency reserves rise in April.

The Swiss central bank said it held 438.949 billion Swiss francs in foreign currency at the end of April, up from 437.935 billion in March, indicating that it has not been actively buying euros to defend its 1.20 Swiss francs per euro minimum exchange rate floor.

The SNB imposed the exchange rate floor in September 2011 to help stave off the risk of deflation and recession, as safe haven inflows prompted by the crisis in the euro zone pushed the Swiss franc close to parity with the euro.


(COZ forex UK)
dwang
 
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