Investing.com - The U.S. dollar edged lower against the Swiss franc on Monday, erasing earlier gains, as investors turned to a meeting of euro zone finance ministers later in the day, as Spanish borrowing costs climbed back to dangerously high levels amid sustained global growth concerns.
USD/CHF pulled away from 0.9760, the pair’s highest since December 13, 2010, to hit 79.58 during European early afternoon trade, falling 0.11%.
The pair was likely to find support at 0.9683, the high of July 6 and resistance at 0.9800, the session high.
Market sentiment remained fragile as the yield on Spain’s 10-year government bonds climbed to 7.11% earlier, above the 6% threshold, widely seen as unsustainable, ahead of a meeting of euro zone finance ministers later in the day.
Euro zone officials were expected to discuss a plan announced last month and designed to help the region’s indebted countries and their struggling banking systems.
The safe haven greenback reached a one-and-a-half year high against the Swissie earlier, as a series of downbeat economic reports sparked fresh concerns over the outlook for global economic growth.
Official data showed on Friday that the U.S. economy added just 80,000 jobs in June, below market expectations for a gain of around 90,000. It was the third consecutive month where hiring failed to top the 100,000-level.
In addition, Chinese government data released earlier Monday showed that consumer price inflation accelerated at the slowest rate since January 2010 in June, sparking fresh concerns over a deeper-than-expected slowdown in China.
Premier Wen Jiabao said over the weekend that China’s economy faces “relatively large” downward pressure in the near-term.
Elsewhere, the Swissie was almost unchanged against the euro with EUR/CHF inching up 0.01%, to hit 1.2011.
Later in the day, European Central Bank President Mario Draghi was to testify before the European Parliament, in Brussels.
USD/CHF pulled away from 0.9760, the pair’s highest since December 13, 2010, to hit 79.58 during European early afternoon trade, falling 0.11%.
The pair was likely to find support at 0.9683, the high of July 6 and resistance at 0.9800, the session high.
Market sentiment remained fragile as the yield on Spain’s 10-year government bonds climbed to 7.11% earlier, above the 6% threshold, widely seen as unsustainable, ahead of a meeting of euro zone finance ministers later in the day.
Euro zone officials were expected to discuss a plan announced last month and designed to help the region’s indebted countries and their struggling banking systems.
The safe haven greenback reached a one-and-a-half year high against the Swissie earlier, as a series of downbeat economic reports sparked fresh concerns over the outlook for global economic growth.
Official data showed on Friday that the U.S. economy added just 80,000 jobs in June, below market expectations for a gain of around 90,000. It was the third consecutive month where hiring failed to top the 100,000-level.
In addition, Chinese government data released earlier Monday showed that consumer price inflation accelerated at the slowest rate since January 2010 in June, sparking fresh concerns over a deeper-than-expected slowdown in China.
Premier Wen Jiabao said over the weekend that China’s economy faces “relatively large” downward pressure in the near-term.
Elsewhere, the Swissie was almost unchanged against the euro with EUR/CHF inching up 0.01%, to hit 1.2011.
Later in the day, European Central Bank President Mario Draghi was to testify before the European Parliament, in Brussels.