Investing.com - The U.S. dollar was higher against the Swiss franc on Tuesday, as markets digested Moody’s decision to downgrade France and investors looked ahead to an upcoming meeting of euro zone finance ministers.
USD/CHF hit 0.9429 during European morning trade, the session high; the pair subsequently consolidated at 0.9414, gaining 0.16%.
The pair was likely to find support at 0.9392, Monday’s low and resistance at 0.9455, Monday’s high.
Market sentiment was dented on Tuesday after Moody’s downgraded France by one notch to Aa1 from Aaa with a negative outlook overnight, citing a deteriorating growth outlook for the euro zone’s second-largest economy.
The announcement did not come as a surprise to markets after Standard & Poor’s cut France’s rating in January.
Later Tuesday, the eurogroup of euro zone finance ministers was to hold talks in Brussels to discuss whether Greece can receive its next installment of bailout funds.
Last week, European leaders granted Greece an additional two years to cut its budget deficit, which resulted in a disagreement with the International Monetary Fund, as it will add to the country’s debt burden.
In Switzerland, official data showed that the trade surplus widened to CHF2.82 billion in October from CHF 1.93 billion in September, above expectations for a surplus of CHF2.34 billion.
Swiss exports fell by a seasonally adjusted 16% in October compared to the same month the previous year, while imports dropped 4.8%.
The Swiss franc was fractionally lower against the euro, with EUR/CHF inching up 0.04% to 1.2048.
Later Tuesday, the U.S. was to publish official data on building permits and housing starts, while Federal Reserve Chairman Ben Bernanke was to speak at an event in New York.
USD/CHF hit 0.9429 during European morning trade, the session high; the pair subsequently consolidated at 0.9414, gaining 0.16%.
The pair was likely to find support at 0.9392, Monday’s low and resistance at 0.9455, Monday’s high.
Market sentiment was dented on Tuesday after Moody’s downgraded France by one notch to Aa1 from Aaa with a negative outlook overnight, citing a deteriorating growth outlook for the euro zone’s second-largest economy.
The announcement did not come as a surprise to markets after Standard & Poor’s cut France’s rating in January.
Later Tuesday, the eurogroup of euro zone finance ministers was to hold talks in Brussels to discuss whether Greece can receive its next installment of bailout funds.
Last week, European leaders granted Greece an additional two years to cut its budget deficit, which resulted in a disagreement with the International Monetary Fund, as it will add to the country’s debt burden.
In Switzerland, official data showed that the trade surplus widened to CHF2.82 billion in October from CHF 1.93 billion in September, above expectations for a surplus of CHF2.34 billion.
Swiss exports fell by a seasonally adjusted 16% in October compared to the same month the previous year, while imports dropped 4.8%.
The Swiss franc was fractionally lower against the euro, with EUR/CHF inching up 0.04% to 1.2048.
Later Tuesday, the U.S. was to publish official data on building permits and housing starts, while Federal Reserve Chairman Ben Bernanke was to speak at an event in New York.