USD/CHF pair traded with stability on Wednesday, with market participants eyeing the highly anticipated FED monetary policy statement later today.
US dollar advanced to a session high against the franc at 0.9211 during the early European trade, after which the cross consolidated at 0.9201. Support was likely to be received at June 13th low, 0.9130, while resistance was to be met at Tuesdays high, 0.9262.
Investors remained wary amid strengthening expectations that the Federal Reserve Bank will start unwinding its bond purchasing program some time later this year, while a Bloomberg News survey in June showed a more precise date of asset purchase paring by FED – at the central banks meeting on October 29-30th. It also stated a reduction of monthly purchases to 65 billion USD.
Meanwhile, earlier today official data pointed that ZEW (Zentrum für Europäische Wirtschaftsforschung) Economic Sentiment indicator for Switzerland remained unchanged in June at the level of 2.2, as this was the same reading during the preceding period. This index reflects financial experts view, based on a survey, regarding their projections of Swiss economic development in the next six months. Analysts, who saw economic conditions deteriorating in the coming six months, decreased in number by 2.6%. In addition, optimistic analysts were also 2.6% fewer. About 2/3 of the respondents predicted stable economic conditions.
Swiss franc was steady against the euro as well, with EUR/CHF pair ticking up 0.05% to 1.2327.