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May 7, 2013
Forex: USD/CHF bounces after French industrial output
FXstreet.com (Barcelona) - After staying sidelined at 0.9385 during the Asian session, the USD/CHF became weaker and moved to 0.9368 low ahead of the release of French budget and industrial output, only to start bouncing back.
French industrial output contracted by -0.9% in March, worse than the -0.3% expected, but February data was revised higher from +0.7% to +0.8%. The French trade deficit narrowed from €-6.011B to €-4.696B, beating €-5.600B consensus, as exports grew from €35.703B to €36.204B while imports dropped from €41.348B to €40.9B.
“A daily close needs to be made above 0.9396 so that immediate downside pressure is alleviated and the 0.9486 ten month downtrend line can be back in focus”, wrote Commerzbank analyst Axel Rudolph, pointing to pressure so that 0.9400 fails and gives way to 0.9247 and then 0.9140.
French industrial output contracted by -0.9% in March, worse than the -0.3% expected, but February data was revised higher from +0.7% to +0.8%. The French trade deficit narrowed from €-6.011B to €-4.696B, beating €-5.600B consensus, as exports grew from €35.703B to €36.204B while imports dropped from €41.348B to €40.9B.
“A daily close needs to be made above 0.9396 so that immediate downside pressure is alleviated and the 0.9486 ten month downtrend line can be back in focus”, wrote Commerzbank analyst Axel Rudolph, pointing to pressure so that 0.9400 fails and gives way to 0.9247 and then 0.9140.