Investing.com - The broadly stronger dollar rose to session highs against the Swiss franc on Monday, boosted by expectations that the Federal Reserve will start to unwind its bond purchases later this year.
USD/CHF hit 0.9520 during European morning trade, the highest since Thursday; the pair subsequently consolidated at 0.9502, gaining 0.44%.
The pair was likely to find support at 0.9437, the session low and resistance at 0.9592, Thursday’s high.
Demand for the greenback continued to be underpinned by expectations that the Fed will start to taper its USD85 billion-a-month bond buying program later this year, while other world central banks will continue to maintain loose monetary policy for the foreseeable future.
The dollar fell sharply last week after Fed Chairman Ben Bernanke said the U.S. economy still needed monetary stimulus.
Earlier Monday, data showed that Chinese economic growth met expectations in the second quarter, easing concerns over a slowdown in the world’s second largest economy.
Official data showed that Chinese gross domestic product expanded 7.5% in the second quarter from a year earlier, following growth of 7.7% in the three months to March and in line with expectations.
Separate reports showed that Chinese retail sales rose to13.3% on a year-over-year basis in June, up from 12.9% in May, while industrial production declined to 8.9% in June from 9.2% the previous month.
Elsewhere, the euro was higher against the Swiss franc, with EUR/CHF rising 0.18% to 1.2385.
The U.S. was to release official data on retail sales and the Empire State manufacturing index later in the trading day.
