Forex - Dollar hits 7-1/2 month lows against Swiss franc

Published 12/19/2012, 05:27 AM
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Investing.com - The U.S. dollar hit seven-and-a-half month lows against the Swiss franc on Wednesday, as hopes for a deal to avoid the U.S. fiscal cliff and improved German business confidence data bolstered market sentiment.

USD/CHF hit 0.9099 during European morning trade, the pair’s lowest since May 2; the pair subsequently consolidated at 0.9102, shedding 0.30%.

The pair was likely to find support at 0.9003, the low of April 3 and resistance at 0.9136, the session high.

Investor confidence was boosted by signs of progress in negotiations aimed at avoiding the fiscal cliff, automatic tax hikes and spending cuts due to take effect on January 1, which investors fear could threaten U.S. and global growth.

In the euro zone, data showed that German business confidence continued to improve in December, in spite of the deteriorating outlook for the euro zone economy.

The Ifo economic institute's German business climate index came in at 102.4 points this month, up from 101.4 in November, beating analysts' expectations for a reading of 102.0.

The Swissy was fractionally lower against the euro, with EUR/CHF inching up 0.07% to 1.2084.

Later Wednesday the U.S. was to publish government data on building permits, housing starts and crude oil stockpiles.


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