Investing.com - The U.S. dollar fell to a two-day low against the Swiss franc on Wednesday, but market sentiment remained under pressure as ongoing concerns over financial troubles in Spain and Italy dampened investor confidence.
USD/CHF hit 0.9571 during European late morning trade, the pair’s lowest since June 11; the pair subsequently consolidated at 0.9573, shedding 0.34%.
The pair was likely to find support at 0.9539, the low of June 6 and resistance at 0.9649, Tuesday’s high.
Market sentiment remained fragile amid concerns that a bailout of as much as EUR100 billion for Spain’s banks will add to the country’s debt burden and make it more difficult for Madrid to access credit markets.
The yield on Spanish 10-year bonds eased back to 6.66% earlier, after surging to a euro-era high of 6.82% on Tuesday, coming close to the 7% level which is viewed as unsustainable in the long run after it prompted bailouts in Greece, Ireland and Portugal.
Investors were also jittery ahead of Sunday’s general election in Greece, which could determine the country’s future in the euro zone.
Earlier Wednesday, Italy saw borrowing costs surge to the highest level since December at an auction of 12-month government bonds, amid growing fears the country will be the next euro zone member to require a bailout.
In Switzerland, official data showed that producer price inflation fell more-than-expected in May, ticking down 0.2% after a 0.1% fall the previous month. Analysts had expected producer price inflation to fall 0.1% in April.
Elsewhere, the Swissie was flat against the euro, with EUR/CHF trading at 1.2011.
Also Wednesday, official data showed that industrial production in the euro zone fell for the second consecutive month in April, underlining fears over the health of the region’s economy.
Later in the day, the U.S. was to release official data on retail sales and producer price inflation, as well as a report on crude oil stockpiles.
USD/CHF hit 0.9571 during European late morning trade, the pair’s lowest since June 11; the pair subsequently consolidated at 0.9573, shedding 0.34%.
The pair was likely to find support at 0.9539, the low of June 6 and resistance at 0.9649, Tuesday’s high.
Market sentiment remained fragile amid concerns that a bailout of as much as EUR100 billion for Spain’s banks will add to the country’s debt burden and make it more difficult for Madrid to access credit markets.
The yield on Spanish 10-year bonds eased back to 6.66% earlier, after surging to a euro-era high of 6.82% on Tuesday, coming close to the 7% level which is viewed as unsustainable in the long run after it prompted bailouts in Greece, Ireland and Portugal.
Investors were also jittery ahead of Sunday’s general election in Greece, which could determine the country’s future in the euro zone.
Earlier Wednesday, Italy saw borrowing costs surge to the highest level since December at an auction of 12-month government bonds, amid growing fears the country will be the next euro zone member to require a bailout.
In Switzerland, official data showed that producer price inflation fell more-than-expected in May, ticking down 0.2% after a 0.1% fall the previous month. Analysts had expected producer price inflation to fall 0.1% in April.
Elsewhere, the Swissie was flat against the euro, with EUR/CHF trading at 1.2011.
Also Wednesday, official data showed that industrial production in the euro zone fell for the second consecutive month in April, underlining fears over the health of the region’s economy.
Later in the day, the U.S. was to release official data on retail sales and producer price inflation, as well as a report on crude oil stockpiles.