Forex - USD/CHF lower on U.S. fiscal cliff progress

Published 11/19/2012, 06:51 AM
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Investing.com - The U.S. dollar was lower against the Swiss franc on Monday, as hopes for a resolution on the U.S. fiscal cliff bolstered market sentiment, but concerns over the euro zone continued to weigh on market sentiment.

USD/CHF hit 0.9427 during European late morning trade, the session low; the pair subsequently consolidated at 0.9431, slipping 0.25%.

The pair was likely to find support at 0.9402, the low of November 15 and resistance at 0.9475, the high of November 14.

Market sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal cliff, a combination of automatic tax increases and spending cuts due to come into effect from January, were "constructive."

Investors remained cautious ahead of a meeting of the eurogroup of euro zone finance ministers on Tuesday to discuss unlocking Greece’s next tranche of financial aid.

Meanwhile, concerns over the economic outlook for the euro zone persisted after official data earlier showed that Italian industrial orders tumbled by 4.0% in September, after a 0.6% increase the previous month.

A separate report showed that the level of loans in arrears in Spanish banks rose to a record 10.7% in September.

The Swissy was little changed against the euro, with EUR/CHF inching up 0.02% to 1.2048.

Later Monday, the U.S. was to release an industry report on existing home sales.



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