Investing.com - The U.S. dollar was steady against the Swiss franc on Thursday, after the European Central Bank cut its growth outlook for 2012 and as worries over political uncertainty in Greece and the consequences of a potential Greek exit from the euro zone supported safe haven demand.
USD/CHF hit 0.9263 during European late morning trade, the daily low; the pair subsequently consolidated at 0.9287, inching down 0.03%.
The pair was likely to find support at 0.9232, Wednesday’s low and resistance at 0.9330, the high of March 14.
Sentiment came under pressure after the ECB cut its 2012 gross domestic product growth outlook to minus 0.2% from minus 0.1%, in its monthly report published earlier, as downside risks remain to the economic outlook.
Meanwhile, investors continued to monitor political developments in Greece, as the debt-laden country struggles to form a coalition government following weekend elections.
Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government.
The political uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
Elsewhere, the Swissie was steady against the euro with EUR/CHF eased up 0.02%, to hit 1.2012.
Later in the day, the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.
USD/CHF hit 0.9263 during European late morning trade, the daily low; the pair subsequently consolidated at 0.9287, inching down 0.03%.
The pair was likely to find support at 0.9232, Wednesday’s low and resistance at 0.9330, the high of March 14.
Sentiment came under pressure after the ECB cut its 2012 gross domestic product growth outlook to minus 0.2% from minus 0.1%, in its monthly report published earlier, as downside risks remain to the economic outlook.
Meanwhile, investors continued to monitor political developments in Greece, as the debt-laden country struggles to form a coalition government following weekend elections.
Alexis Tsipras, the head of Greece’s second-biggest party Syriza, gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government.
The political uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
Elsewhere, the Swissie was steady against the euro with EUR/CHF eased up 0.02%, to hit 1.2012.
Later in the day, the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was also due to speak.