Investing.com - The U.S. dollar rose against the Swiss franc on Monday, as concerns over the European Central Bank’s ability to offer new measures to tackle the euro zone debt crisis weighed on market sentiment, while investors eyed a series of central bank meetings this week.
USD/CHF hit 0.9800 during European early afternoon trade, the daily high; the pair subsequently consolidated at 0.9794, climbing 0.43%.
The pair was likely to find support at 0.9693, the low of July 27 and resistance at 0.9851, the high of July 17.
Market sentiment was boosted last week, after European Central Bank President Mario Draghi pledged to do whatever was necessary to protect the euro zone from collapse, fueling hopes that the ECB would act to lower borrowing costs for highly indebted countries such as Spain and Italy.
German Chancellor Angela Merkel and French President François Hollande vowed to defend the euro in a joint statement on Friday and said that they are "deeply committed to the integrity of the euro zone."
But investors remained cautious as German Economy Minister Philipp Roesler warned the ECB earlier about any large-scale government bond purchases.
Meanwhile, the greenback’s gains were limited as investors were also looking ahead to the outcome of the Federal Reserve’s policy setting meeting on Wednesday, amid speculation over whether the bank will hint at further easing measures.
Elsewhere, the Swissie was flat against the euro with EUR/CHF trading at 1.2011.
Also Monday, Italy saw bond yields fall below 6% at an auction of 10-year government bonds, indicating that investors now see Italian government debt as a safer investment.
Italy sold EUR2.49 billion of 10-year bonds at an average yield of 5.96%, down from 6.19% last month and the lowest level since April.
Later in the day, U.S. Treasury Secretary Timothy Geithner was to meet with German Finance Minister Wolfgang Schaeuble and Mario Draghi to discuss the global economy.
USD/CHF hit 0.9800 during European early afternoon trade, the daily high; the pair subsequently consolidated at 0.9794, climbing 0.43%.
The pair was likely to find support at 0.9693, the low of July 27 and resistance at 0.9851, the high of July 17.
Market sentiment was boosted last week, after European Central Bank President Mario Draghi pledged to do whatever was necessary to protect the euro zone from collapse, fueling hopes that the ECB would act to lower borrowing costs for highly indebted countries such as Spain and Italy.
German Chancellor Angela Merkel and French President François Hollande vowed to defend the euro in a joint statement on Friday and said that they are "deeply committed to the integrity of the euro zone."
But investors remained cautious as German Economy Minister Philipp Roesler warned the ECB earlier about any large-scale government bond purchases.
Meanwhile, the greenback’s gains were limited as investors were also looking ahead to the outcome of the Federal Reserve’s policy setting meeting on Wednesday, amid speculation over whether the bank will hint at further easing measures.
Elsewhere, the Swissie was flat against the euro with EUR/CHF trading at 1.2011.
Also Monday, Italy saw bond yields fall below 6% at an auction of 10-year government bonds, indicating that investors now see Italian government debt as a safer investment.
Italy sold EUR2.49 billion of 10-year bonds at an average yield of 5.96%, down from 6.19% last month and the lowest level since April.
Later in the day, U.S. Treasury Secretary Timothy Geithner was to meet with German Finance Minister Wolfgang Schaeuble and Mario Draghi to discuss the global economy.