The USD rose to a one-week high against the Swiss franc on Wednesday, as risk sentiment weakened ahead of the European Central Bank’s monthly policy meeting due to begin later in the day. USD/CHF hit 0.9144 during European morning trade, the pair’s highest since January 30; the pair subsequently consolidated at 0.9120, climbing 0.41%. The pair was likely to find support at 0.9057, the session low and resistance at 0.9178, the high of January 11. The ECB was widely expected to keep rates unchanged at 0.75% on Thursday, while a post-policy meeting press conference by President Mario Draghi would be closely watched for indications on the future direction of monetary policy. Sentiment had improved on Tuesday after data showed that the euro zone’s final services purchasing managers’ index improved to a 10-month high of 48.6 in January from a final reading of 47.2 the previous month, adding to signs of recovery in the region. The data overshadowed concerns over political uncertainty in Spain and Italy which pushed peripheral borrowing costs higher on Monday. The Swissie was lower against the euro with EUR/CHF adding 0.10%, to hit 1.2347.
EasyForexNews Research Team