Investing.com - The U.S. dollar was little changed close to a seven-month low against the Swiss franc on Monday as investors remained focused on talks aimed at avoiding the U.S. fiscal cliff.
USD/CHF hit 0.9195 during European morning trade, the pair’s lowest since May 4; the pair subsequently consolidated at 0.9182, inching up 0.05%.
The pair was likely to find support at 0.9073, the low of May 2 and resistance at 0.9246, Friday’s high.
The dollar remained under pressure after the Federal Reserve announced new easing measures last week and said interest rates would remain close to zero as long as inflation forecasts remain near the bank’s 2% target and until the U.S. unemployment rate declines to 6.5% or less.
This was offset by ongoing concerns over the U.S. fiscal cliff, approximately USD600 billion of automatic tax hikes and spending cuts due to take effect on January 1 which investors’ fears could derail the U.S. recovery, if lawmakers cannot reach an agreement.
The Swissy was steady against the euro, with EUR/CHF dipping 0.01% to 1.2081.
Later Monday, European Central Bank President Mario Draghi was to appear before the European Parliament’s Committee on Economic and Monetary Affairs to discuss the economy.
USD/CHF hit 0.9195 during European morning trade, the pair’s lowest since May 4; the pair subsequently consolidated at 0.9182, inching up 0.05%.
The pair was likely to find support at 0.9073, the low of May 2 and resistance at 0.9246, Friday’s high.
The dollar remained under pressure after the Federal Reserve announced new easing measures last week and said interest rates would remain close to zero as long as inflation forecasts remain near the bank’s 2% target and until the U.S. unemployment rate declines to 6.5% or less.
This was offset by ongoing concerns over the U.S. fiscal cliff, approximately USD600 billion of automatic tax hikes and spending cuts due to take effect on January 1 which investors’ fears could derail the U.S. recovery, if lawmakers cannot reach an agreement.
The Swissy was steady against the euro, with EUR/CHF dipping 0.01% to 1.2081.
Later Monday, European Central Bank President Mario Draghi was to appear before the European Parliament’s Committee on Economic and Monetary Affairs to discuss the economy.