Forex - USD/CHF slips lower in subdued trade

The U.S. dollar slipped lower against the Swiss franc in subdued trade on Monday, although growing expectations for the Federal Reserve to soon taper its bond-buying program continued to support demand for the greenback. 

USD/CHF hit 0.9384 during European morning trade, the pair's lowest since July 17; the pair subsequently consolidated at 0.9401, edging down 0.15%. 

The pair was likely to find support at 0.9358, the low of July 17 and resistance at 0.9462, the high of July 19. 

The greenback remained supported after Fed Chairman Ben Bernanke said last week that the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.”

Bernanke said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future. 

Over the weekend, the Group of 20 nations stressed the need for a “careful” shift away from monetary easing so that market volatility does not negatively impact on the global recovery.

Finance ministers and central bankers from the G20 nations said Saturday that future changes to monetary policy should be “carefully calibrated and clearly communicated" and added that tapering should be "calibrated" to economic conditions. 

The Swissie was steady against the euro with EUR/CHF dipping 0.02%, to hit 1.2366. 

Later in the day, the U.S. was to release private sector data on existing home sales.