US dollar moved to higher levels against the Swiss franc, as investors seemed wary ahead of the economic indicators due to be released from the United States later and amid uncertainty over the future of Federal Reserve Banks stimulus program.
USD/CHF pair reached a session high at 0.9394 at 9:46 GMT, after which consolidation followed at 0.9380. Support was likely to be received at July 22nd low, 0.9290, while resistance was to be met at July 21st high, 0.9416.
The greenback demonstrated solid positions against its major peers, following Wednesday’s report on new home sales in the United States, which rose to a five-year high during June. This may raise the probability of the Federal Reserve Bank tapering its bond purchases by this year’s end. Commerce Department of the United States said that new home sales rose by 8.3% to a seasonally adjusted annual number of 497 000 units in June, considerably above preliminary estimates of 484 000 units, as in May home sales were revised down to 459 000 from 476 000 previously.
Later in the trading day the United States was expected to release information, regarding durable goods orders, which are a major component of the general factory orders in the country, as better than expected results may give additional support to demand for the national currency. Additionally, the weekly report on initial jobless claims will show the tendency in the US labor market.
Meanwhile, the franc was trading slightly higher against the euro, as EUR/CHF pair ticked down 0.06% to 1.2370 at 11:27 GMT. In addition, GBP/CHF was also losing ground for the day, down by 0.22% to trade at 1.4330 at 11:28 GMT.
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