Topic: COZfx: Dollar vs. Swiss Franc near 5-month highs after KOF report
COZforex: The US dollar was trading near 5 month highs against the Swiss franc on Wednesday, as disappointing Swiss data weighed on the franc while demand for the greenback remained supported ahead of the Federal Reserve's policy statement.
USD/CHF hit 0.9079 amid European morning trade, the pair's highest since February; the pair subsequently consolidated at 0.9075, inching up 0.06%. COZFX strategist Nigel Boynton said, USD/CHF is predicted to find support at 0.9043, and a drop through could take it to the next support line of 0.9018. Meanwhile, the pair is predicted to find its first resistance at 0.9084, and a rise through could take it to the next resistance line of 0.91.
Data showed that the KOF economic barometer for Switzerland ticked down to 98.1 in July, from a reading of 100.5 in June, whose figure was revised up from a previously estimated reading of 100.4. Analysts had expected the index to rise to 101.0 this month.
The U.S. was to release the preliminary estimate on second quarter gross domestic product growth later Wednesday, which was to be followed by the conclusion Fed policy meeting.
Investors were also awaiting the US nonfarm payrolls report for July on Friday.
Earlier this month Fed Chair Janet Yellen said that rates could rise sooner if the recovery in the labor market continued.
(COZ forex UK)