Investing.com - The U.S. dollar extended gains against the Swiss franc on Thursday, as hopes for progress on the euro zone crisis at a European Union summit faded, bolstering investor demand for the safety of the dollar.
USD/CHF hit 0.9679 during European morning trade, the pair’s highest since June 4; the pair subsequently consolidated at 0.9667, gaining 0.37%.
The pair was likely to find support at 0.9589, the session low and resistance at 0.9734, the high of May 31.
Market sentiment was hit after a German government official indicated that the EU summit would not result in any detailed decisions and warned against high expectations among investors ahead of the conclusion of the summit on Friday.
Earlier in the week, German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds, while EU Economic and Monetary Affairs Commissioner Olli Rehn said Wednesday that the summit would focus on short-term measures to stabilize markets and ease pressure on at-risk countries.
Adding to the negative tone, Italy saw long term borrowing costs rose to 6.19%, their highest level since December, following an auction of 10-year bonds, as investor sentiment on the country continued to deteriorate.
Meanwhile, the yield on Spanish 10-year bonds ticked up to 7%, the level that prompted Greece, Ireland and Portugal to seek international bailouts.
The Swissie was little changed against the euro, with EUR/CHF dipping 0.01% to 1.2009.
Later Thursday, the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.
USD/CHF hit 0.9679 during European morning trade, the pair’s highest since June 4; the pair subsequently consolidated at 0.9667, gaining 0.37%.
The pair was likely to find support at 0.9589, the session low and resistance at 0.9734, the high of May 31.
Market sentiment was hit after a German government official indicated that the EU summit would not result in any detailed decisions and warned against high expectations among investors ahead of the conclusion of the summit on Friday.
Earlier in the week, German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds, while EU Economic and Monetary Affairs Commissioner Olli Rehn said Wednesday that the summit would focus on short-term measures to stabilize markets and ease pressure on at-risk countries.
Adding to the negative tone, Italy saw long term borrowing costs rose to 6.19%, their highest level since December, following an auction of 10-year bonds, as investor sentiment on the country continued to deteriorate.
Meanwhile, the yield on Spanish 10-year bonds ticked up to 7%, the level that prompted Greece, Ireland and Portugal to seek international bailouts.
The Swissie was little changed against the euro, with EUR/CHF dipping 0.01% to 1.2009.
Later Thursday, the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.