The Swiss franc drifted higher against the other major currencies in European deals on Wednesday, as Switzerland’s manufacturing activity improved more than economists forecast in March.
Data from the Credit Suisse showed that Swiss PMI rose to 47.9 in March from 47.3 in February. The reading was expected to rise to 47.5. The score below 50 indicates contraction in the sector.
Eurozone officials will hold a teleconference call to discuss the progress towards an agreement on Greece’s economic reforms. Without a deal, Greece will run out of money to make its state wage and pension payments before the end of April.
Traders await ADP private sector employment data and ISM manufacturing data for March for further clues about the Fed monetary policy outlook.
European markets are trading in a positive territory, after Eurozone manufacturing sector expanded more than initially estimated as growth accelerated in Germany, Spain, Italy and the Netherlands.
Final data from Markit Economics showed that the Purchasing Mangers’ Index rose to a 10-month high of 52.2 in March from 51 in February. The flash score was 51.9.
The franc was higher against the yen, euro and the greenback in the Asian session. Against the pound, it moved sideways.
The franc climbed to 1.0416 against the euro, its highest since February 2. Next key resistance for the franc is seen around the 1.025 mark.
The franc edged up to 1.4296 against the pound and 124.01 against the yen, off early lows of 1.4444 and 123.17, respectively. If the franc extends rise, 1.425 and 124.5 are seen its next resistance levels against the pound and the yen.
The franc rose back to 0.9679 against the greenback, from a low of 0.9741 hit at 4:45 am ET. The franc may test resistance around the 0.95 zone.
Looking ahead, U.S. ADP private sector employment data and U.S. ISM manufacturing index for March and construction spending for February are slated for release in the New York session.
At 9:00 am ET, U.S. Federal Reserve Bank of San Francisco President John Williams will participate in a panel discussion titled “Financial Stability: How Essential Financial Stability be to Central Banks?” at the Federal Reserve Bank of Atlanta’s financial markets conference “Central Banking in the Shadows: Monetary Policy and Financial Stability Post crisis,” in Stone Mountain.
About an hour and a half later, at the same conference in Stone Mountain, U.S. Federal Reserve Bank of Atlanta President Dennis Lockhart will participate in a panel discussion titled “Monetary Policy: Will the Traditional Banking Channel Remain Central to Monetary Policy?”.
The material has been provided by InstaForex Company – www.instaforex.com