Forex: USD/CHF bouncing towards 0.9300 ahead of PMIs

FXstreet.com (Barcelona) - The USD/CHF is climbing the chart after finding support at 0.9250 in yesterday trading in reaction to the FOMC meeting. The bouncing movement is only few pips from reaching the 0.9300 mark.

Switzerland SVME PMI is expected to improve from 48.3 to 49.0 in April. Markit manufacturing PMI in Eurozone countries is due shortly, starting with Spain. Excluding Germany (consensus of a drop from 49.0 to 47.9), analysts are expecting a slight improvement, but still contractionary. The ECB interest rate decision is the key event of the day and consensus points to a 25bp rate cut, to 0.50%.

“However it should be noted that intraday charts are more negative and implying scope for losses to 0.9207(recent low) then 0.9140/20 the 78.6% retracement of the move seen this year”, wrote Commerzbank analyst Karen Jones. “Rallies need to regain the 0.9383/90 pivot (November and January highs) to alleviate immediate downside pressure and re-target the 0.9593 10 month downtrend”, she added.