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COZfx: USD/CHF slips to more than 2-1/2 year lows

Discussion in 'Analisa Fundamental' started by harryer, Oct 25, 2013.

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  1. harryer

    harryer Member

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    COZforex: The US dollar was edged down against the Swiss franc on Thursday, to trade near more than 2 1/2 year lows as speculation that the Federal Reserve could delay the tapering of its asset purchases continued to weigh on demand for the greenback.

    USD/CHF hit 0.8904 amid European morning trade, the pair's lowest since January 2011; the pair subsequently consolidated at 0.8915, easing 0.10%. COZFX strategist Nigel Boynton said, USD/CHF is predicted to find support at 0.8896, and a drop through could take it to the next support line of 0.8875. Meanwhile, the pair is predicted to find its first resistance at 0.8953, and a rise through could take it to the next resistance line of 0.8989.

    The dollar remained under pressure after data earlier in the week showed that US jobs growth slowed in September, cementing expectations that the Fed would continue the current pace of its asset purchase program well into next year.

    Separately, market sentiment found support after the preliminary reading of China’s HSBC manufacturing index for October rose to a 7 months high of 50.9, up from a final reading of 50.2 in September. Economists had expected the index to tick up to 50.5. The data offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation.

    Also Thursday, the preliminary reading of the euro zone’s manufacturing purchasing managers’ index ticked up to 51.3 in October from a final reading of 51.1 in September, slightly below expectations for a reading of 51.4.
    Germany’s manufacturing PMI edged up to 51.5 from a final reading of 51.1 in September, but the services PMI declined to a three-month low of 52.3. Manufacturing and service sector activity in France declined unexpectedly this month.

    Later in the day, the US was to release data on initial jobless claims, the trade balance and new home sales.

    (COZ forex UK)
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