USD/CHF trims losses after Fed official’s comments

NEW YORK (Forex News Now) – The Swiss franc trimmed gains versus the dollar on Tuesday, after a senior U.S. Federal Reserve official said large financial institutions should hold more capital.

In U.S. afternoon currency trading, USD/CHF hit 1.0525, down 0.25 percent on the day, after rising from a daily low of 1.0452.

Daniel Tarullo, a Federal Reserve board governor, earlier told a senate banking committee: “Our view is that large institutions should be sufficiently capitalized so that they could sustain the losses associated with a systemic problem.”

According to forex analysis, USD/CHF was likely to touch support around the low of July 19, 1.04, and encounter immediate resistance around the high of July 12, 1.0676.

Also Tuesday, official data showed that Switzerland’s trade surplus jumped higher than expected in June. The Swiss Federal Statistical Office said the country’s trade surplus widened to CHF 1.77 billion during the month, up from a revised CHF 0.8 billion in May.

Meanwhile, the Swissy climbed versus the euro: EUR/CHF traded at 1.3568, down 0.63 percent.