During early European deals on Wednesday, the Swiss franc showed mixed trading against its major counterparts. While the franc gained against the pound, it recovered from a 2-day low against the dollar and the yen. On the other hand, the franc eased from a 13-day high against the euro.

The Swiss franc strengthened to 1.6421 against the British pound during early deals on Wednesday. If the Swiss currency gains further, it may find resistance around the 1.622 level. At Tuesday's New York session close, the pound-franc pair was quoted at 1.6622.

The Swiss franc rose to a 13-day high of 1.5189 against the euro at 4:10 am ET Wednesday. Thereafter, the franc eased and the pair is currently worth 1.5230, compared to 1.5245 hit late New York Tuesday. The near term support level for the Swiss currency is seen at 1.529.

The euro recovered despite a report showed that Germany's business confidence fell to a record low in March. A monthly survey from the Munich-based Ifo Institute for Economic Research showed that German business confidence deteriorated to 82.1 in March from 82.6 in February. This was the lowest reading since the survey began in 1991. The expected level for March was 82.2.

The index measuring current situation worsened to 82.7 in March from 84.3 last month. However, the index stood above the expected reading of 82.5. On the other hand, the expectations index rose to 81.6 from 80.9 last month. Economists were expecting a reading of 81.5 for March.

In addition, Italy's economic think tank ISAE said consumer confidence in the economy declined in March after rising in past two months. The consumer confidence index fell to 99.8 in March from 104 recorded in February. Economists had forecast the reading to decline to 103.

The Swiss franc advanced after hitting a 2-day low of 1.1332 against the dollar and 86.06 against the yen at 4:30 am ET Wednesday. At present, the franc is trading at 1.1250 against the dollar and 86.88 against the yen, compared to yesterday's close of 1.1321 and 86.50, respectively. The next upside target level for the franc is seen at 87.5 against the yen and 1.117 against the dollar.

The Ministry of Finance said today that Japan saw a merchandise trade balance of 82.4 billion yen in February, marking the first surplus in five months. The February figure came in better than expectations for a 13.7 billion yen deficit following the revised record 956.9 billion yen shortfall in January. The original figure came in at -952.6 billion yen.

Meanwhile, the Bank of Japan Deputy Governor Hirohide Yamaguchi said today that Japan's economic and financial conditions will likely continue to be severe. Addressing business leaders in Otaru, Yamaguchi said at this point, the central bank is giving higher priority for securing market stability and facilitating corporate financing, which are the second and third main areas of the BoJ's conduct of monetary policy.

Traders now look forward to the New York session, in which the US Commerce Department is set to release its durable goods orders report at 8:30 am ET. Economists look forward to a 2% decline in the durable goods orders for February.

At 10:00 am ET, the Commerce Department is due to release its new home sales report for February. The consensus estimate calls for a decline in new homes sales to 300,000.

The Energy Information Administration is scheduled to release its weekly petroleum inventory report at 10:30 am ET.

Cleveland Federal Reserve Bank Sandra Pianalto is due to deliver a speech on forces for economic recovery Regional Growth Partnership luncheon in Maumee, Ohio at 12:20 pm ET. Meanwhile, San Francisco Federal Reserve Bank Janet Yellen is scheduled to deliver a speech to the Forecasters Club of New York on the U.S. economic situation and policy responses in New York at 12:30 pm ET.

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