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19 Mar 2013
Forex: USD/CHF pressured as European session unfolds
FXstreet.com (Barcelona) - The greenback is being sold against the Swissy after touching 0.9480 as the European session opened. The pair has already gone to 0.9452 low via spike on the release of the ZEW survey.
The ZEW survey for March shows a better image in Germany, better than expected. However, it is also showing a concerning drop in the Eurozone, with economic sentiment falling from 42.4 to 33.4 (consensus of 43.7).
Economic sentiment in Germany rose from 48.2 to 48.5, beating 48.0 consensus. Current situation rose from 5.2 to 13.6, beating 6.0 consensus. EMU construction output fell from -4.6% to -7.3% in January, with a monthly contraction of -1.4%.
UBS analysts are bullish: “While important support at 0.9359 holds, there is potential for resumption of strength”, wrote analyst Geoffrey Yu, pointing to initial resistance at 0.9567, while a break above would open 0.9636.
The ZEW survey for March shows a better image in Germany, better than expected. However, it is also showing a concerning drop in the Eurozone, with economic sentiment falling from 42.4 to 33.4 (consensus of 43.7).
Economic sentiment in Germany rose from 48.2 to 48.5, beating 48.0 consensus. Current situation rose from 5.2 to 13.6, beating 6.0 consensus. EMU construction output fell from -4.6% to -7.3% in January, with a monthly contraction of -1.4%.
UBS analysts are bullish: “While important support at 0.9359 holds, there is potential for resumption of strength”, wrote analyst Geoffrey Yu, pointing to initial resistance at 0.9567, while a break above would open 0.9636.