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Forex - USD/CHF down as Greek debt crisis weighs on sentiment

Published 06/13/2011, 06:26 AM
USD/CHF
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EUR/CHF
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Investing.com – The U.S. dollar was down against the Swiss franc on Monday, trading close to the pair’s all-time low as unresolved concerns over a restructuring of Greek sovereign debt boosted demand for the safe haven franc.

USD/CHF hit 0.8368 during European morning trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 0.8372, shedding 0.68%.

The pair was likely to find short-term support at 0.8325, the low of June 7 and the pair’s record low and resistance at 0.8542, the high of June 1.

Over the weekend, Eurogroup chairman Jean-Claude Juncker said that Greece needs a "soft, voluntary restructuring" of its debt.

But the European Central Bank is opposed to proposals for a bond swap, with the bank’s President Jean-Claude Trichet saying late last week that imposing losses on creditors would be the same as default.

Meanwhile, the greenback remained under pressure amid uncertainty over future U.S. monetary policy, ahead of the end of quantitative easing by the Federal Reserve this month.

The Swiss franc was also up against the euro, with EUR/CHF briefly touching 1.2003, the pair’s lowest since the launch of the singe currency in 1999.

Later in the day, ECB President Jean-Claude Trichet was to speak at an event in London.

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