US dollar edged higher and traded close to session highs against the Swiss franc on Tuesday, as investors were focusing on the US retail sales report later in the day.
USD/CHF touched its highest point during the day at 0.9300 at 11:26 GMT, also the highest level since August 6th. Support was likely to be received at August 12th low, 0.9220, while resistance was to be encountered at August 5th high, 0.9333.
The US dollar regained positions against most of its peers on Monday and continued this tendency on Tuesday ahead of the retail sales report, scheduled for release out of the United States today, as it may provide clues that economic recovery was on track. The greenback was pressured last week, after the disappointing non-farm payrolls report on August 2nd, which stated US economy added fewer than anticipated job positions during July. This made market players reassess their expectations, regarding the timing of Fed’s bond purchase pare back.
Later in the day, the United States was to publish data, regarding also business inventories and index of import prices, while later in the week reports on inflation, industrial production, housing starts and consumer confidence were expected.
Meanwhile, the Swiss franc was trading lower against the euro, as EUR/CHF cross advanced 0.35% to 1.2358 at 11:35 GMT. Earlier today it was reported that industrial production in the single currency zone expanded during June, while expectations, regarding German economy, rose, according to ZEW Centre for Economic Research. German economic sentiment increased by 5.7 points to reach a five-month high at 42.0 during August, as in July it showed a reading of 36.3. At the same time, the index of economic sentiment in the Euro zone advanced to 44.0 during August, marking its highest value since April 2010 and improving from 32.8, registered in July.
The franc was losing ground against the sterling as well, with GBP/CHF pair up by 0.41% to trade at 1.4376 at 11:44 GMT.
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