Forex - USD/CHF higher as Greek debt worries dominate

Published 01/25/2012, 05:59 AM
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Investing.com - The U.S. dollar was higher against the Swiss franc on Wednesday, as concerns over the restructuring of Greek debt dominated market sentiment while markets eyed the Federal Reserve’s rate decision later in the day.

USD/CHF 0.9316 during European morning trade, the pair’s highest since January 23; the pair subsequently consolidated at 0.9319, rising 0.46%.

The pair was likely to find support at 0.9251, the low of January 23 and resistance at 0.9370, the high of January 20.

Concerns over a potential Greek default persisted as talks on a deal to help restructure the country’s sovereign debt stalled on Tuesday.

A Greek official said the country had the euro zone's support to complete the debt swap talks in the "coming days." Meanwhile, International Monetary Fund chief Christine Lagarde said she remained positive that a deal could still be reached.

Sentiment briefly found support earlier after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.

Elsewhere, the Swissie was higher against the euro with EUR/CHF edged down 0.03%, to hit 1.2087.

The Fed was to announce the federal funds rate and publish its official rate statement later Wednesday. The U.S. was also to release industry data on pending home sales, followed by official data on crude oil stockpiles.

Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.


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