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Forex - USD/CHF down as Greece debt woes weigh on sentiment

Published 06/16/2011, 05:56 AM
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Investing.com – The Swiss franc was lower against the U.S. dollar on Thursday, as fears that Greece was moving closer to a default and the possibility of contagion to other euro zone members bolstered safe haven demand.

USD/CHF hit 0.8494 during European morning trade, the daily low; the pair subsequently consolidated at 0.8506, shedding 0.24%.

The pair was likely to find support at 0.8346, Tuesday’s low and short-term resistance at 0.8550, Wednesday’s high and an almost three-week high.

Earlier in the day, the Swiss National Bank left its benchmark interest rate unchanged at 0.25% in a widely expected decision, as bank President Philipp Hildebrand said that policy makers are “concerned” about the franc’s surge.

“Despite the strong appreciation of the Swiss franc, the economy continues to benefit from robust international demand,” the central bank said. “However, margins in the export industry are coming under increasing pressure.”

The Swiss franc shrugged off official data showing that Swiss industrial production fell by a seasonally adjusted 9.2% in the first quarter, outstripping expectations for a 7.8% decline.

Year-on-year, Swiss industrial production rose at a rate of 5.0% in the first quarter, disappointing expectations for a 5.6% increase.

The Swissie was also higher against the euro, with EUR/CHF shedding 0.69% to hit 1.2007.

Later in the day, the U.S. was to publish a weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity.

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