Forex - USD/CHF almost unchanged as markets focus on Spain

Published 10/15/2012, 06:21 AM
Updated 10/15/2012, 06:22 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar was almost unchanged against the Swiss franc on Monday, as markets continued to focus on developments in Spain, amid ongoing uncertainty over whether the country will ask for a full-scale sovereign bailout.

USD/CHF hit 0.9372 during European late morning trade, the daily high; the pair subsequently consolidated at 0.9333, easing up 0.01%.

The pair was likely to find support at 0.9307, the low of October 12 and resistance at 0.9384, the high of October 4.

Market sentiment came under pressure after Madrid did not request financial aid over the weekend and a request for a bailout is now seen as increasingly unlikely ahead of regional elections on October 21.

Elsewhere in the euro zone, Greek Prime Minister Antonis Samaras said Sunday his country was facing the “last hurdle” before recovery and expressed confidence that the government will reach an agreement with international creditors ahead of Thursday’s European Union summit.

Earlier in the day, worries over the outlook for global growth eased however, after China posted better-than-expected trade data over the weekend, with official data showing that the trade surplus unexpectedly widened in September as export demand increased.

In Switzerland, official data showed that producer price inflation rose by 0.3% in September, slightly better than expectations for a 0.2% gain, after a 0.5% increase the previous month.

The Swissie was steady against the euro with EUR/CHF inching 0.02% higher, to hit 1.2093.

Later in the day, the U.S. was to release official data on retail sales, as well as a report on business inventories.


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