Investing.com - The U.S. dollar edged higher against the Swiss franc on Wednesday, as renewed concerns over sovereign funding in the euro zone supported safe haven demand.
USD/CHF hit 0.9494 during European morning trade, the pair’s highest since January 9; the pair subsequently consolidated at 0.9508, gaining 0.15%.
The pair was likely to find support at 0.9410, the low of January 5 and resistance at 0.9578, the high of January 6.
Investors were cautious as Spain and Italy prepared to sell as much as EUR17 billion in debt on Thursday and Friday respectively.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable, at 7.14%, while the yield on Spanish 10-year bonds was at 5.54%.
Markets were also jittery ahead of Thursday’s European Central Bank policy meeting. The ECB was expected to keep rates unchanged at 1% and to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
Meanwhile, a report showed that overnight deposits at the European Central Bank on Wednesday hit a fresh record of EUR485.898 billion, indicating that banks in the region remain unwilling to lend to each other.
Elsewhere, the Swissie was fractionally lower against the euro with EUR/CHF easing up 0.04%, to hit 1.2133.
Later in the day, the U.S. was to produce official data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.
USD/CHF hit 0.9494 during European morning trade, the pair’s highest since January 9; the pair subsequently consolidated at 0.9508, gaining 0.15%.
The pair was likely to find support at 0.9410, the low of January 5 and resistance at 0.9578, the high of January 6.
Investors were cautious as Spain and Italy prepared to sell as much as EUR17 billion in debt on Thursday and Friday respectively.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable, at 7.14%, while the yield on Spanish 10-year bonds was at 5.54%.
Markets were also jittery ahead of Thursday’s European Central Bank policy meeting. The ECB was expected to keep rates unchanged at 1% and to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
Meanwhile, a report showed that overnight deposits at the European Central Bank on Wednesday hit a fresh record of EUR485.898 billion, indicating that banks in the region remain unwilling to lend to each other.
Elsewhere, the Swissie was fractionally lower against the euro with EUR/CHF easing up 0.04%, to hit 1.2133.
Later in the day, the U.S. was to produce official data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.