Forex: USD/CHF tumbles towards 0.9400

FXstreet.com (Barcelona) - The USDCHF is plunging across the board towards the 0.9400 psychological level, but has reached as low as 0.9404 low for now. As the greenback weakens today, the pair has been falling since 0.9464 high, but its sharpest fall is being seen since the NY opening after the release of US CPI, initial jobless claims, NY Empire State and Phily Fed manufacturing surveys, as well as Fed's Lacker comments about being against more bond purchases and that +3% growth could be seen if a grand bargain reached the US deficit.

The headline CPI inflation report came in higher than expected in October, from 2.0% to 2.2% (consensus of 2.1%), with the other figures coming in line with consensus. The US initial jobless claims jumped from 361K (revised from 355K) to 439K (consensus of 375K), concerning investors. Pleasing the market was the NY empire state manufacturing survey, improving against expectations, from -6.16 to -5.22 in November (consensus of -6.70).
Little after, the US Philadelphia Fed Manufacturing Survey came in much below the consensus of 2, as it dropped from 5.7 to -10.7 in November due to Hurricane Sandy.

"The market is correcting lower very near term and while we would allow for further near term losses, we would expect to see dips back remain quite shallow - dips will find support at initially at 0.9380 ahead of 0.9352 (support line), which is expected to contain the downside", wrote analyst Karen Jones, pointing to a target at around 0.9620 and other at 0.9594.