Investing.com - The U.S. dollar rose to a session high against the Swiss franc on Monday, as investor confidence was hit by ongoing concerns over Spanish and Italian finances, bolstering safe haven demand for the greenback.
USD/CHF hit 0.9860 during European morning trade, the session high; the pair subsequently consolidated at 0.9854, gaining 0.51%.
The pair was likely to find support at 0.9785, the session low and near-term resistance at 0.9872, Friday’s high and an 18-month high.
Market sentiment soured amid uncertainty over whether some bondholders could be forced to accept losses under the terms of Spain's bank bailout.
The yield on Spanish 10-year bonds rose to 6.71% earlier, re-approaching the critical 7% threshold, widely seen as unsustainable in the long run. The yield on Italian 10-year bonds ticked up to 6.07%.
Meanwhile, Germany’s constitutional court announced that it will deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution on September 12, disappointing hopes for an earlier decision.
Elsewhere, investors were looking ahead to Federal Reserve Chairman Ben Bernanke's testimony on the economic outlook to the U.S. Senate on Tuesday and Wednesday, amid ongoing speculation over whether the central bank will introduce more easing measures to stimulate the economy.
The Swissie was little changed against the euro, with EUR/CHF inching up 0.01% to 1.2010.
Later in the day, the U.S. was to publish official data on retail sales and business inventories, as well as a report on manufacturing activity in New York. In addition, the International Monetary Fund was to publish forecasts for global economic growth.
USD/CHF hit 0.9860 during European morning trade, the session high; the pair subsequently consolidated at 0.9854, gaining 0.51%.
The pair was likely to find support at 0.9785, the session low and near-term resistance at 0.9872, Friday’s high and an 18-month high.
Market sentiment soured amid uncertainty over whether some bondholders could be forced to accept losses under the terms of Spain's bank bailout.
The yield on Spanish 10-year bonds rose to 6.71% earlier, re-approaching the critical 7% threshold, widely seen as unsustainable in the long run. The yield on Italian 10-year bonds ticked up to 6.07%.
Meanwhile, Germany’s constitutional court announced that it will deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution on September 12, disappointing hopes for an earlier decision.
Elsewhere, investors were looking ahead to Federal Reserve Chairman Ben Bernanke's testimony on the economic outlook to the U.S. Senate on Tuesday and Wednesday, amid ongoing speculation over whether the central bank will introduce more easing measures to stimulate the economy.
The Swissie was little changed against the euro, with EUR/CHF inching up 0.01% to 1.2010.
Later in the day, the U.S. was to publish official data on retail sales and business inventories, as well as a report on manufacturing activity in New York. In addition, the International Monetary Fund was to publish forecasts for global economic growth.