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Forex pairs in this Article » USD/CHF (Barcelona) - The USDCHF retested the support at the 0.9400 mark just ahead of the NY opening only to retrace it back to 0.9415/20 as the session developed, with Fed Lacker's statement attracting much attention.

The FOMC member is in favor that the US Congress limits the central bank's credit policy and is against linking the policy to the unemployment rate. Lacker warned that larger balance sheets also means bigger chances for mistakes. Also, Reuters reported that Italy may veto the EU budget if it goes against the coutry's interests.

Meanwhile, the Eurogroup meeting is starting at 16:00 GMT. "The Eurozone is expected to make progress on releasing further aid to Greece, likely with some sort of verbal agreement on releasing an additional ¬44bn, and with enough tweaking around the edges (like lowering interest payments) to satisfy the IMF for now", wrote the TD Securities team of analysts.

"We will retain our bullish outlook while the currency pair stays above the two month support line at 0.9373 and, more importantly, the 55 day moving average at 0.9370", wrote analyst Axel Rudolph, targeting 0.9620, with 0.9594 (50% retracement of the move down from July) in the middle.
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