Forex - USD/CHF pushes higher in subdued trade

Published 10/29/2012, 06:34 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar was higher against the Swiss franc on Monday, as market sentiment was hit by uncertainty over Spain and Greece, while Friday’s upbeat U.S. growth data was overshadowed by weak corporate earnings.

USD/CHF hit 0.9381 during European morning trade, the session high; the pair subsequently consolidated at 0.9367, gaining 0.21%.

The pair was likely to find support at 0.9341, the session low and resistance at 0.9417, the high of October 11.

Investors remained cautious amid ongoing uncertainty over when Spain may request a bailout, while doubts over whether Greece can meet austerity targets also weighed.

Meanwhile, doubts over the global economic outlook persisted in spite of Friday’s better-than-expected data on U.S. third quarter growth.

The U.S. economy grew by 2% in the three months to September, on the back of stronger consumer spending, after expanding by 1.3% in the preceding quarter. Economists had predicted growth of 1.9%.

Trading activity was expected to remain thin on Monday, as a result of the first market-wide, unscheduled closure since September 2001 as Hurricane Sandy approached the northeastern U.S.

The Swissy was fractionally higher against the euro, with EUR/CHF dipping 0.05% to 1.2090.

Later Monday, Spanish Prime Minister Mariano Rajoy was to hold talks with Italian Prime Minister Mario Monti in Madrid, to discuss the crisis in the euro zone.



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