Investing.com – The U.S. dollar rallied to a one-month high against the Swiss franc on Tuesday, amid broad based risk aversion as rising Italian and Spanish borrowing costs fuelled investor concerns over the escalating debt crisis in the euro zone.
USD/CHF hit 0.9178 during European early afternoon trade, the pair’s highest since October 10; the pair subsequently consolidated at 0.9162, advancing 0.88%.
The pair was likely to find support at 0.8959, Monday’s low and resistance at 0.9272, the high of October 10.
Concerns over the financial crisis in the single currency bloc mounted as Italy's 10-year bond yields rose to near unsustainable levels, climbing above 7%, while Spanish 10-year yields rose above 6% for the first time since the European Central Bank started to buy the country's bonds in August.
Meanwhile, data showed that the ZEW index of German economic sentiment fell to a three-year low this month, as political uncertainty in Greece and Italy weighed on the outlook for the euro zone.
The Swissie was also hit by speculation that the Swiss National Bank might raise the cap on the euro to 1.30 after a string of data showing that the Swiss economy is slowing and amid growing calls by industry leaders and politicians for more action from the central bank.
The Swissie was also lower against the euro, with EUR/CHF rising 0.21% to hit 1.2411.
Later in the day, the U.S. was to release official data on retail sales and producer price inflation.
USD/CHF hit 0.9178 during European early afternoon trade, the pair’s highest since October 10; the pair subsequently consolidated at 0.9162, advancing 0.88%.
The pair was likely to find support at 0.8959, Monday’s low and resistance at 0.9272, the high of October 10.
Concerns over the financial crisis in the single currency bloc mounted as Italy's 10-year bond yields rose to near unsustainable levels, climbing above 7%, while Spanish 10-year yields rose above 6% for the first time since the European Central Bank started to buy the country's bonds in August.
Meanwhile, data showed that the ZEW index of German economic sentiment fell to a three-year low this month, as political uncertainty in Greece and Italy weighed on the outlook for the euro zone.
The Swissie was also hit by speculation that the Swiss National Bank might raise the cap on the euro to 1.30 after a string of data showing that the Swiss economy is slowing and amid growing calls by industry leaders and politicians for more action from the central bank.
The Swissie was also lower against the euro, with EUR/CHF rising 0.21% to hit 1.2411.
Later in the day, the U.S. was to release official data on retail sales and producer price inflation.