Investing.com - The U.S. dollar dropped to six-day lows against the Swiss franc on Thursday, as news of a last minute U.S. budget deal to raise the debt ceiling, avoiding a sovereign default, supported market sentiment.
USD/CHF hit 0.9040 during European morning trade, the pair's lowest since October 9; the pair subsequently consolidated at 0.9051, tumbling 0.91%.
The pair was likely to find support at 0.9020, the low of October 9 and resistance at 0.9147, the session high.
Market sentiment improved amid relief over the last minute deal to avert an unprecedented U.S. sovereign debt default.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
The agreement came with just hours to spare before the deadline to raise the USD16.7 trillion debt ceiling. President Barack Obama signed the bill into law early on Thursday morning and pledged to begin reopening the government "immediately."
However, investors remained concerned over the economic impact of the government shutdown and the possibility of another debt crisis, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.
The Swissie was higher against the euro with EUR/CHF shedding 0.28%, to hit 1.2327.
Later in the day, the U.S. was to publish a report on initial jobless claims and the Philly Fed manufacturing index.
USD/CHF hit 0.9040 during European morning trade, the pair's lowest since October 9; the pair subsequently consolidated at 0.9051, tumbling 0.91%.
The pair was likely to find support at 0.9020, the low of October 9 and resistance at 0.9147, the session high.
Market sentiment improved amid relief over the last minute deal to avert an unprecedented U.S. sovereign debt default.
The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.
The agreement came with just hours to spare before the deadline to raise the USD16.7 trillion debt ceiling. President Barack Obama signed the bill into law early on Thursday morning and pledged to begin reopening the government "immediately."
However, investors remained concerned over the economic impact of the government shutdown and the possibility of another debt crisis, as the temporary solution does not resolve the underlying budgetary issues dividing Republicans and Democrats.
The Swissie was higher against the euro with EUR/CHF shedding 0.28%, to hit 1.2327.
Later in the day, the U.S. was to publish a report on initial jobless claims and the Philly Fed manufacturing index.