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Forex - USD/CHF edges up, near 3-week high

Published 02/18/2013, 05:39 AM
Updated 02/18/2013, 05:40 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar edged up against the Swiss franc on Monday, to trade close to a three-week high as concerns over the outlook for growth in the euro zone supported demand for the safe haven greenback.

USD/CHF hit 0.9258 during European morning trade, the pair's highest since 0.9268, the high of January 29; the pair subsequently consolidated at 0.9228, adding 0.12%.

The pair was likely to find support at 0.9205, the low of February 15 and resistance at 0.9268, the high of January 29.

Investor confidence weakened after data on Thursday showed that the euro zone's economy contracted by 0.6% in the three months to December, compared to expectations for a 0.4% decline.

The weak data fuelled speculation over a possible rate cut by the European Central Bank in the coming months.

Separately, at a summit in Moscow last week, the G-20 pledged to ensure that monetary policy is focused on price stability and growth, rather than on weakening currencies.

The Swissie was steady against the euro with EUR/CHF inching up 0.04%, to hit 1.2321.

Trade volumes were expected to remain light on Monday, with U.S. markets remaining closed for the President’s Day holiday.


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