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Forex - USD/CHF almost unchanged in cautious trade

Published 07/10/2012, 06:38 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 Tuesday, swinging between small gains and losses as investors remained cautious amid sustained global growth concerns, while European Union finance ministers were to hold talks in Brussels.

USD/CHF hit 0.9738 during European early afternoon trade, the daily low; the pair subsequently consolidated at 0.9753, easing 0.03%.

The pair was likely to find support at 0.9683, the low of July 6 and resistance at 0.9798, Monday’s high and a one-and-a-half year high.

Market sentiment remained fragile as markets eyed talks between EU finance ministers, after their euro zone counterparts held a previous meeting on Monday.

Euro zone ministers agreed on Monday to make EUR30 billion in aid available to assist Spain’s struggling banking sector by the end of the month, while also supporting plans to extend Spain’s deficit target deadline by one year to 2014.

They made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.

Spain’s 10-year government bonds eased to 6.9% earlier, moving below the critical 7% threshold which is widely seen as unsustainable in the long term.

Meanwhile, fears over the global economic growth intensified after official data showed that Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed.

Elsewhere, the Swissie was flat against the euro with EUR/CHF trading at 1.2010.

Also Tuesday, official data showed that French industrial production tumbled 1.9% in May, far more than expectations for a 0.9% fall and following a 1.4% rise the previous month.


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