Investing.com - The dollar slipped lower against the Swiss franc on Wednesday, re-approaching Tuesday’s 19-month lows as concerns over the economic impact of political deadlock in the U.S. weighed.
USD/CHF hit 0.9040 during European morning trade, the session low; the pair subsequently consolidated at 0.9045, shedding 0.12%.
The pair was likely to find support at 0.8991, Tuesday’s low and a 19-month trough and resistance at 0.9076, the session high.
The dollar remained under pressure amid worries that the first U.S. government shutdown in 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Political turmoil in Italy also lent support to the traditional safe haven Swiss franc. Italian Prime Minister Enrico Letta was facing a vote of confidence in parliament, after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
The euro was fractionally lower against the Swiss franc, with EUR/CHF dipping 0.06% to 1.2239.
Investors were looking ahead to the outcome of the European Central Bank’s latest policy meeting and press conference with President Mario Draghi later Wednesday. Meanwhile, the U.S. was to release the ADP nonfarm payrolls report.
USD/CHF hit 0.9040 during European morning trade, the session low; the pair subsequently consolidated at 0.9045, shedding 0.12%.
The pair was likely to find support at 0.8991, Tuesday’s low and a 19-month trough and resistance at 0.9076, the session high.
The dollar remained under pressure amid worries that the first U.S. government shutdown in 17 years would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Political turmoil in Italy also lent support to the traditional safe haven Swiss franc. Italian Prime Minister Enrico Letta was facing a vote of confidence in parliament, after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.
The euro was fractionally lower against the Swiss franc, with EUR/CHF dipping 0.06% to 1.2239.
Investors were looking ahead to the outcome of the European Central Bank’s latest policy meeting and press conference with President Mario Draghi later Wednesday. Meanwhile, the U.S. was to release the ADP nonfarm payrolls report.