Investing.com - The U.S. dollar erased gains against the Swiss franc on Thursday, after European Central Bank President Mario Draghi said the bank will do whatever is necessary to preserve the euro.
USD/CHF pulled back from 0.9911, the session high, to hit 0.9862 during European morning trade, slipping 0.20%.
The pair was likely to find support at 0.9776, the low of July 20 and resistance at 0.9962, Wednesday’s high and an almost 19-month high.
Market sentiment found support following the comments, but investors remained cautious amid persistent concerns that Spain will require a full-scale sovereign bailout, in addition to the rescue package already agreed for its banks.
The yield on Spanish 10-year bonds was at 7.34%, below Wednesday’s euro-era high of 7.74%, but still above the critical 7% threshold widely considered unsustainable if a country is to remain solvent.
Meanwhile, European Commission President José Manuel Barroso was to hold talks with talks with Greek Prime Minister Antonis Samaras later in the day, amid concerns that the country’s economic reform program is off schedule.
Sentiment on the greenback was hit by mounting speculation over the possibility of more monetary easing from the Federal Reserve in order to shore up growth and spur employment, ahead of its policy meeting next week.
The Swissie was steady against the euro, with EUR/CHF dipping 0.01% to 1.2009.
Later in the day, the U.S. was to release official data on durable goods orders and initial jobless claims, as well as industry data on pending home sales.
USD/CHF pulled back from 0.9911, the session high, to hit 0.9862 during European morning trade, slipping 0.20%.
The pair was likely to find support at 0.9776, the low of July 20 and resistance at 0.9962, Wednesday’s high and an almost 19-month high.
Market sentiment found support following the comments, but investors remained cautious amid persistent concerns that Spain will require a full-scale sovereign bailout, in addition to the rescue package already agreed for its banks.
The yield on Spanish 10-year bonds was at 7.34%, below Wednesday’s euro-era high of 7.74%, but still above the critical 7% threshold widely considered unsustainable if a country is to remain solvent.
Meanwhile, European Commission President José Manuel Barroso was to hold talks with talks with Greek Prime Minister Antonis Samaras later in the day, amid concerns that the country’s economic reform program is off schedule.
Sentiment on the greenback was hit by mounting speculation over the possibility of more monetary easing from the Federal Reserve in order to shore up growth and spur employment, ahead of its policy meeting next week.
The Swissie was steady against the euro, with EUR/CHF dipping 0.01% to 1.2009.
Later in the day, the U.S. was to release official data on durable goods orders and initial jobless claims, as well as industry data on pending home sales.