Investing.com - The U.S. dollar rose to a session high against the Swiss franc on Wednesday, after Germany auctioned two-year bonds at a negative yield for the first time ever, indicating continuing demand for safe haven assets amid concerns over the debt crisis in the euro zone.
USD/CHF hit 0.9822 during European morning trade, the session high; the pair subsequently consolidated at 0.9811, gaining 0.40%.
The pair was likely to find support at 0.9750, Tuesday’s low and a one-week low and resistance at 0.9851, Tuesday’s high.
Market sentiment deteriorated after Germany auctioned EUR4.17 billion of two-year government bonds at a yield of minus 0.06%, indicating that investor’s value safety more highly than returns amid sustained concerns over the euro zone’s debt crisis.
Meanwhile, market participants continued to mull over mixed messages from the Federal Reserve after Chairman Ben Bernanke offered a downbeat view of the U.S. economic outlook on Tuesday, but failed to explicitly indicate if additional stimulus measures are imminent.
In testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday, Bernanke said growth had lost momentum in the first half of the year.
However, he stopped short of indicating whether the Fed would embark on a third round of quantitative easing, but reiterated that the central bank was prepared to take further action to support the economic recovery if necessary.
In Switzerland, a report showed that the ZEW index of economic sentiment improved modestly in July, coming in at minus 42.5, up from a reading of minus 43.4 in June, which was the lowest since January.
The Swissie was fractionally higher against the euro, with EUR/CHF inching down 0.03% to 1.2009.
Later Wednesday, Ben Bernanke was to testify in front of the House Financial Services Committee. In addition, the U.S. was to publish official data on building permits and housing starts.
USD/CHF hit 0.9822 during European morning trade, the session high; the pair subsequently consolidated at 0.9811, gaining 0.40%.
The pair was likely to find support at 0.9750, Tuesday’s low and a one-week low and resistance at 0.9851, Tuesday’s high.
Market sentiment deteriorated after Germany auctioned EUR4.17 billion of two-year government bonds at a yield of minus 0.06%, indicating that investor’s value safety more highly than returns amid sustained concerns over the euro zone’s debt crisis.
Meanwhile, market participants continued to mull over mixed messages from the Federal Reserve after Chairman Ben Bernanke offered a downbeat view of the U.S. economic outlook on Tuesday, but failed to explicitly indicate if additional stimulus measures are imminent.
In testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday, Bernanke said growth had lost momentum in the first half of the year.
However, he stopped short of indicating whether the Fed would embark on a third round of quantitative easing, but reiterated that the central bank was prepared to take further action to support the economic recovery if necessary.
In Switzerland, a report showed that the ZEW index of economic sentiment improved modestly in July, coming in at minus 42.5, up from a reading of minus 43.4 in June, which was the lowest since January.
The Swissie was fractionally higher against the euro, with EUR/CHF inching down 0.03% to 1.2009.
Later Wednesday, Ben Bernanke was to testify in front of the House Financial Services Committee. In addition, the U.S. was to publish official data on building permits and housing starts.