Investing.com - The U.S. dollar pulled back from an 11-month high against the Swiss franc on Monday, as markets eyed a meeting between French and German leaders later in the day, but the greenback remained supported amid worries over rising borrowing costs in the euro zone.
USD/CHF retreated from 0.9596, the pair’s highest since February 17, to hit 0.9521 during European morning trade, shedding 0.31%.
The pair looked likely to find support at 0.9410, last Thursday’s low and resistance at 0.9596, the session high.
Later Monday, German Chancellor Angela Merkel and French President Nicolas Sarkozy were to meet to discuss proposals to tighten coordination of fiscal policy in the single currency bloc.
Market sentiment was also boosted after data showed that German exports jumped 2.5% in November; unexpectedly increasing the trade surplus and easing concerns over a slowdown in the euro zone’s largest economy.
But the safe haven greenback remained supported by concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs, as markets looked ahead to government debt auctions by Spain and Italy later in the week.
Earlier in the day, the yield on 10-year Italian government bonds climbed to 7.16%, above the 7% threshold seen as unsustainable, while the yield on Spanish 10-year bonds was at 5.72%.
Meanwhile, the Swiss franc was almost unchanged against the euro and higher against the pound, with EUR/CHF inching up 0.02% to hit 1.2153 and GBP/CHF slipping 0.20% to hit 1.4706.
Also Monday, official data showed that Swiss retail sales rose significantly more-than-expected in November.
Switzerland’s Federal Statistical Office said that retail sales rose at an annualized rate of 1.8% in November, blowing past expectations for a 0.5% gain.
The previous month’s figure was revised up to a gain of 0.1% from a previously reported 0.2% decline.
USD/CHF retreated from 0.9596, the pair’s highest since February 17, to hit 0.9521 during European morning trade, shedding 0.31%.
The pair looked likely to find support at 0.9410, last Thursday’s low and resistance at 0.9596, the session high.
Later Monday, German Chancellor Angela Merkel and French President Nicolas Sarkozy were to meet to discuss proposals to tighten coordination of fiscal policy in the single currency bloc.
Market sentiment was also boosted after data showed that German exports jumped 2.5% in November; unexpectedly increasing the trade surplus and easing concerns over a slowdown in the euro zone’s largest economy.
But the safe haven greenback remained supported by concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs, as markets looked ahead to government debt auctions by Spain and Italy later in the week.
Earlier in the day, the yield on 10-year Italian government bonds climbed to 7.16%, above the 7% threshold seen as unsustainable, while the yield on Spanish 10-year bonds was at 5.72%.
Meanwhile, the Swiss franc was almost unchanged against the euro and higher against the pound, with EUR/CHF inching up 0.02% to hit 1.2153 and GBP/CHF slipping 0.20% to hit 1.4706.
Also Monday, official data showed that Swiss retail sales rose significantly more-than-expected in November.
Switzerland’s Federal Statistical Office said that retail sales rose at an annualized rate of 1.8% in November, blowing past expectations for a 0.5% gain.
The previous month’s figure was revised up to a gain of 0.1% from a previously reported 0.2% decline.