Investing.com – The euro trimmed losses against the Swiss franc on Wednesday, after earlier plummeting to a record low as the cost of insuring Spanish government debt against default surged, sparking fresh concerns over the euro zone debt crisis.
EUR/CHF clawed up from 1.2757, the all time low, to hit 1.2818 during European early afternoon trade, shedding 0.16%.
The pair was likely to find support at 1.2700 and resistance at 1.2829, Tuesday’s high.
Earlier in the day, Moody’s put Spain's Aa1 sovereign credit rating on review for a possible downgrade, citing high funding needs, doubts over its banking sector and concerns surrounding regional finances.
Following the announcement, the premium that investors demand to hold Spanish government debt rose, with the yield on ten-year bonds rising by nine basis points to 5.59%. The gap in yields between Spanish debt and benchmark German government bonds also widened.
Elsewhere, German Chancellor Angela Merkel said Wednesday that European Union leaders will adopt a deal to create a permanent mechanism for resolving sovereign debt crises when they meet later in the week.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.16% to hit 1.3357.
Also Wednesday, a report by the ZEW Center for Economic Research showed that Swiss economic expectations improved in December.
The Credit Suisse ZEW Indicator surged 18.4 points to -12.5. On the index a reading above zero indicates optimism, below indicates pessimism.
EUR/CHF clawed up from 1.2757, the all time low, to hit 1.2818 during European early afternoon trade, shedding 0.16%.
The pair was likely to find support at 1.2700 and resistance at 1.2829, Tuesday’s high.
Earlier in the day, Moody’s put Spain's Aa1 sovereign credit rating on review for a possible downgrade, citing high funding needs, doubts over its banking sector and concerns surrounding regional finances.
Following the announcement, the premium that investors demand to hold Spanish government debt rose, with the yield on ten-year bonds rising by nine basis points to 5.59%. The gap in yields between Spanish debt and benchmark German government bonds also widened.
Elsewhere, German Chancellor Angela Merkel said Wednesday that European Union leaders will adopt a deal to create a permanent mechanism for resolving sovereign debt crises when they meet later in the week.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.16% to hit 1.3357.
Also Wednesday, a report by the ZEW Center for Economic Research showed that Swiss economic expectations improved in December.
The Credit Suisse ZEW Indicator surged 18.4 points to -12.5. On the index a reading above zero indicates optimism, below indicates pessimism.