Forex - USD/CHF lower, focus remains on Greece

Published 11/14/2012, 05:08 AM
Updated 11/14/2012, 05:10 AM
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Investing.com - The U.S. dollar was lower against the Swiss franc on Wednesday, as sentiment was mildly supported by hopes that Greece will soon receive additional financial aid, although sustained concerns over the country's financial crisis weighed.

USD/CHF hit 0.9445 during European morning trade, the pair's lowest since November 9; the pair subsequently consolidated at 0.9440, sliding 0.36%.

The pair was likely to find support at 0.9420, the low of November 6 and resistance at 0.9482, the high of November 8.

Sentiment found some support after German newspaper Bild reported on Tuesday that Greece is to receive EUR44 billion of financial aid in one payment, citing German government sources.

But investors remained cautious amid ongoing divisions between officials from the International Monetary Fund and Europe on how best to reduce Greece’s debt to manageable levels.

A decision on unlocking the country’s next tranche of aid, worth EUR31.5 billion, has been postponed until 20 November.

Sentiment was also weighed by data showing that industrial production in the euro zone fell by 2.5% in September, more than the expected 1.9% decline, following a rise of 0.9% the previous month.

Separately, the ZEW Centre for Economic Research said that its index of economic expectations for Switzerland improved to to minus 27.9 in October from a reading of minus 28.9 the previous month.

Analysts had expected the index to improve to minus 25 in October.

Elsewhere, the Swissie was steady against the euro with EUR/CHF inching up 0.04%, to hit 1.2041.

Later in the day, the U.S. was to produce government data on retail sales, producer price inflation and business inventories. In addition, the Federal Reserve was to publish the minutes of its most recent policy-setting meeting.


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