Investing.com – The U.S. dollar erased early gains against the Swiss franc on Tuesday, tumbling to a three-week low after data showing that Britian’s economy contracted unexpectedly in the fourth quarter sparked a wave of risk aversion.
USD/CHF hit 0.946 during European early afternoon trade, the pair’s lowest since January 4; the pair subsequently consolidated at 0.9468, shedding 0.24%.
The pair was likely to find support at 0.9325, the low of January 4 and resistance at 0.9522, the day’s high.
The Office for National Statistics said the U.K. economy contracted by 0.5% in the fourth quarter, confounding expectations for a 0.5% increase.
The weak U.K. data fuelled concerns over the global economic recovery and dampened speculation over potential interest rate increases in the euro zone and Britain as the focus changed to concerns over growth rather than inflation.
The Swissy was also higher against the euro, with EUR/CHF shedding 0.37% to hit 1.2894.
Later Tuesday, the U.S. was to publish industry data on house prices as well as a report on consumer confidence.
USD/CHF hit 0.946 during European early afternoon trade, the pair’s lowest since January 4; the pair subsequently consolidated at 0.9468, shedding 0.24%.
The pair was likely to find support at 0.9325, the low of January 4 and resistance at 0.9522, the day’s high.
The Office for National Statistics said the U.K. economy contracted by 0.5% in the fourth quarter, confounding expectations for a 0.5% increase.
The weak U.K. data fuelled concerns over the global economic recovery and dampened speculation over potential interest rate increases in the euro zone and Britain as the focus changed to concerns over growth rather than inflation.
The Swissy was also higher against the euro, with EUR/CHF shedding 0.37% to hit 1.2894.
Later Tuesday, the U.S. was to publish industry data on house prices as well as a report on consumer confidence.