Investing.com - The U.S. dollar fell to a session low against the Swiss franc on Tuesday, as market sentiment improved amid hopes for the formation of a coalition government in Greece, but broad concerns over the situation in the euro zone looked likely to continue to support safe haven demand.
USD/CHF hit 0.9510 during European late morning trade, the session low; the pair subsequently consolidated at 0.9513, shedding 0.36%.
The pair was likely to find support at 0.9476, the low of June 11 and resistance at 0.9553, the session high.
Investor sentiment was buoyed by hopes that Greece's New Democracy party will form a coalition government with the socialist Pasok party, which would allow Athens to resume negotiations with creditors on its international bailout deal.
The yield on Spanish 10-year bonds eased back to 7.08% from a session high of 7.13%, but remained above the critical 7% threshold amid concerns that a EUR100 billion bailout agreed earlier this month may not be enough to overhaul the country’s ailing banking system.
Earlier Tuesday, Madrid saw short-term borrowing costs more than double at an auction of government bonds.
Elsewhere in the euro zone, a report showed that the ZEW index of economic sentiment in Germany tumbled to minus 16.9 in June from 10.8 the previous month, amid concerns over political instability in Greece and worries over sovereign debt contagion.
Meanwhile, market participants were looking ahead to the conclusion of the Federal Reserve’s policy meeting on Wednesday, amid speculation over the possibility of a third round of monetary stimulus from the U.S. central bank.
The Swissie was almost unchanged against the euro, with EUR/CHF inching down 0.01% to trade at 1.2009.
Later in the day, the U.S. was to publish official data on building permits and housing starts. Elsewhere, leaders from the Group of 20 nations were to hold a second day of talks in Los Cabos, Mexico.
USD/CHF hit 0.9510 during European late morning trade, the session low; the pair subsequently consolidated at 0.9513, shedding 0.36%.
The pair was likely to find support at 0.9476, the low of June 11 and resistance at 0.9553, the session high.
Investor sentiment was buoyed by hopes that Greece's New Democracy party will form a coalition government with the socialist Pasok party, which would allow Athens to resume negotiations with creditors on its international bailout deal.
The yield on Spanish 10-year bonds eased back to 7.08% from a session high of 7.13%, but remained above the critical 7% threshold amid concerns that a EUR100 billion bailout agreed earlier this month may not be enough to overhaul the country’s ailing banking system.
Earlier Tuesday, Madrid saw short-term borrowing costs more than double at an auction of government bonds.
Elsewhere in the euro zone, a report showed that the ZEW index of economic sentiment in Germany tumbled to minus 16.9 in June from 10.8 the previous month, amid concerns over political instability in Greece and worries over sovereign debt contagion.
Meanwhile, market participants were looking ahead to the conclusion of the Federal Reserve’s policy meeting on Wednesday, amid speculation over the possibility of a third round of monetary stimulus from the U.S. central bank.
The Swissie was almost unchanged against the euro, with EUR/CHF inching down 0.01% to trade at 1.2009.
Later in the day, the U.S. was to publish official data on building permits and housing starts. Elsewhere, leaders from the Group of 20 nations were to hold a second day of talks in Los Cabos, Mexico.