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Forex - USD/CHF edges lower as Greece events dominate

Published 06/18/2012, 06:10 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar edged lower against the Swiss franc on Monday, as concerns over Greece’s financial turmoil and uncertainty over the formation of a new government took over earlier signs of relief.

USD/CHF hit 0.9423 during European late morning trade, the pair’s lowest since May 22; the pair subsequently consolidated at 0.9492, edging down 0.11%.

The pair was likely to find support at 0.9412, the low of May 16 and resistance at 0.9573, the high of June 14.

Market sentiment strengthened earlier, after political parties supporting Greece's international bailout were to begin forging a government on Monday, after an election victory over radical leftists staved off the prospect of the debt-laden country leaving the euro.

Conservative New Democracy leader Antonis Samaras called for broad support after winning Sunday's election over the radical Syriza party, which had threatened to cancel the aid deal in defiance of the country's lenders.

But investors remained cautious as concerns over the handling of Greece’s financial crisis persisted after German Foreign Minister Guido Westerwelle said on Monday the substance of Athens’ reform program remained non-negotiable.

Meanwhile, worries over other indebted countries in the euro zone re-emerged after the yield on Spanish 10-year bonds climbed earlier to a euro-era high of 7.13%, above the critical 7% threshold which prompted bailouts in Greece, Ireland and Portugal.

The Swissie was steady against the euro with EUR/CHF edging 0.02% higher, to hit 1.2011.

Markets were also eyeing a two-day G-20 summit, set to begin in Mexico later in the day.


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