Investing.com - The U.S. dollar was lower against the Swiss franc on Wednesday, as market sentiment strengthened on the back of expectations that China will ease monetary policy, but uncertainty over the ongoing debt crisis in the euro zone lingered.
USD/CHF 0.9437 during European morning trade, the pair’s lowest since January 13; the pair subsequently consolidated at 0.9421, shedding 0.82%.
The pair was likely to find support at 0.9320, the low of December 28 and resistance at 0.9545, the high of January 12.
Demand for riskier assets found support after Chinese media reports that the central bank could ease monetary policy by the end of this month, to stimulate growth in the world’s second largest economy.
But concerns over the debt crisis in the euro zone remained after Fitch’s warned earlier that Italy could face a two-notch downgrade.
The comments came after the ratings agency, which currently holds Italy at an A+ rating, said last week that there was a “significant” chance that Italy would be downgraded by the end of January.
In Switzerland, a report showed that the ZEW index of Swiss economic expectations rebounded to minus 50.1 this month, from minus 72.0 in December, the strongest increase since April 2011.
Meanwhile, Greece’s government was due to resume talks with its bond holders to discuss a voluntary write-down on Greece’s sovereign debt, after talks broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds.
Elsewhere, the Swissie was fractionally lower against the euro with EUR/CHF edging up 0.01%, to hit 1.2094.
Later in the day, the U.S. was to release official data on producer price inflation and industrial production.
USD/CHF 0.9437 during European morning trade, the pair’s lowest since January 13; the pair subsequently consolidated at 0.9421, shedding 0.82%.
The pair was likely to find support at 0.9320, the low of December 28 and resistance at 0.9545, the high of January 12.
Demand for riskier assets found support after Chinese media reports that the central bank could ease monetary policy by the end of this month, to stimulate growth in the world’s second largest economy.
But concerns over the debt crisis in the euro zone remained after Fitch’s warned earlier that Italy could face a two-notch downgrade.
The comments came after the ratings agency, which currently holds Italy at an A+ rating, said last week that there was a “significant” chance that Italy would be downgraded by the end of January.
In Switzerland, a report showed that the ZEW index of Swiss economic expectations rebounded to minus 50.1 this month, from minus 72.0 in December, the strongest increase since April 2011.
Meanwhile, Greece’s government was due to resume talks with its bond holders to discuss a voluntary write-down on Greece’s sovereign debt, after talks broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds.
Elsewhere, the Swissie was fractionally lower against the euro with EUR/CHF edging up 0.01%, to hit 1.2094.
Later in the day, the U.S. was to release official data on producer price inflation and industrial production.