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Forex - Dollar turns lower against Swiss franc

Published 01/16/2013, 04:09 AM
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Investing.com - The U.S. dollar turned lower against the Swiss franc on Wednesday, but losses were limited as investors remained cautious amid concerns over the U.S. debt ceiling debate.

USD/CHF hit 0.9291 during European morning trade, the session low; the pair subsequently consolidated at 0.9296, sliding 0.26%.

The pair was likely to find support at 0.9210, Tuesday’s low and resistance at 0.9332, Tuesday’s high and a one-month high.

On Tuesday, the World Bank warned that the political deadlock over raising the U.S. debt ceiling was curtailing global economic growth and posed a greater threat to the global economy than a renewed crisis in the euro zone.

The Swiss franc was little changed after official data showed that retail sales in Switzerland rose by an annualized 2.9% in November, missing expectations for a 3.2% gain.

Elsewhere, the Swissy pulled away from more than one-year lows against the euro, with EUR/CHF down 0.53% to 1.2333.

The euro came under pressure after Jean-Claude Juncker, the head of the euro group of finance ministers, said Tuesday that the euro’s value was “dangerously high” and posed a threat to the recovery in the euro zone.

Later Wednesday both the euro zone and the U.S. were to release official data on consumer inflation, while Germany was to hold an auction of 10-year government bonds.



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