Forex - USD/CHF edges higher as risk appetite sharpens

Published 09/27/2010, 06:59 AM
USD/CHF
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EUR/CHF
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Investing.com – The U.S. dollar edged higher against the Swiss franc on Monday, hitting a fresh daily high as risk appetite sharpened, dampening demand for the safe haven Swiss franc.

USD/CHF hit 0.9872 during European morning trade, a fresh daily high; the pair subsequently consolidated at 0.9844, gaining 0.10%.

The pair was likely to find support at 0.9778, last Friday's low and resistance at 0.9981, the high of September 22.

Earlier in the day, Swiss media reported that a commission of Swiss banking regulators will ask Swiss lenders UBS and Credit Suisse to go beyond the banking regulations set down by Basel III.

The Basel III rules require banks to hold capital worth at least 4.5% of total assets, plus another 2.5% as a buffer against financial turmoil. The Swiss National Bank said earlier this month that the new global regulations did not go far enough.

The Swissy was also up against the euro, with EUR/CHF shedding 0.14% to hit 1.3245.

Also Monday, economist Nouriel Roubini, famous for forecasting the credit crisis, warned that the U.S. economy could descend into a second recession. He also said that second-quarter GDP figures for the U.S. were likely to be revised down after “awful” June housing data.

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