Investing.com - The U.S. dollar was little changed against the Swiss franc in cautious trade on Tuesday, as sustained concerns over the health of Spain’s banking sector offset speculation that China may soon do more to shore up growth.
USD/CHF hit 0.9607 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 0.9586, inching up 0.03%.
The pair was likely to find support at 0.9539, Friday’s low and resistance at 0.9610, Friday’s high and a four-month high.
Investor sentiment was supported by growing speculation that China may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
But market participants remained cautious amid concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
Spain’s Treasury auctioned EUR8.5 billion of six-month bonds at an average yield of 2.10%, a six-month high, up from 1.77% at a similar auction last month.
The yield on Spanish 10-year bonds rose to 6.48% following the auction, hovering just below the 2012 high of 6.50% hit Monday after the government announced that it was to recapitalize one of the country’s largest commercial lenders.
The Swissie was fractionally higher against the euro, with EUR/CHF dipping 0.06% to hit 1.2013.
Later in the day, Germany was to release preliminary data on consumer price inflation, while the U.S. was to release reports on house price inflation and consumer confidence.
USD/CHF hit 0.9607 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 0.9586, inching up 0.03%.
The pair was likely to find support at 0.9539, Friday’s low and resistance at 0.9610, Friday’s high and a four-month high.
Investor sentiment was supported by growing speculation that China may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
But market participants remained cautious amid concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
Spain’s Treasury auctioned EUR8.5 billion of six-month bonds at an average yield of 2.10%, a six-month high, up from 1.77% at a similar auction last month.
The yield on Spanish 10-year bonds rose to 6.48% following the auction, hovering just below the 2012 high of 6.50% hit Monday after the government announced that it was to recapitalize one of the country’s largest commercial lenders.
The Swissie was fractionally higher against the euro, with EUR/CHF dipping 0.06% to hit 1.2013.
Later in the day, Germany was to release preliminary data on consumer price inflation, while the U.S. was to release reports on house price inflation and consumer confidence.