Investing.com - The U.S. dollar was almost unchanged against the Swiss franc on Thursday, as uncertainty over whether Spain will request a full scale bailout weighed on market sentiment ahead of the country’s budget announcement later in the day.
USD/CHF hit 0.9409 during European early afternoon trade, the daily high; the pair subsequently consolidated at 0.9395, inching up 0.02%.
The pair was likely to find support at 0.9368, Wednesday's low and resistance at 0.9421, the high of September 13.
Investors remained cautious as Spain’s government was due to unveil its draft budget statement for 2013, amid ongoing speculation over whether Madrid will seek a full-scale sovereign bailout, which would trigger the European Central Bank’s bond buying program.
Demonstrators clashed with police on the streets of Athens and Madrid this week in an upsurge of popular anger at new austerity measures being imposed on two of the euro zone's most vulnerable economies.
Meanwhile, Italy saw borrowing costs ease at an auction of government bonds earlier, with the yield on 10-year bonds falling to 5.24% from 5.82% and the yield on five-year bonds falling to 4.09%, down from 4.73%.
The Swissie was fractionally higher against the euro with EUR/CHF edging down 0.07%, to hit 1.2083.
Later in the day, the U.S. was to publish its weekly government report on initial jobless claims, as well as data on pending home sales and durable goods orders.