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Forex - USD/CHF rises, upside seen limited

Published 12/04/2012, 05:06 AM
Updated 12/04/2012, 05:07 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar rose against the Swiss franc on Tuesday, as concerns over U.S. fiscal policy continued to weigh, although sentiment remained supported by newfound optimism over the handling of Greece and Spain's financial troubles.

USD/CHF hit 0.9287 during European morning trade, the pair's highest since November 30; the pair subsequently consolidated at 0.9290, rising 0.35%.

The pair was likely to find support at 0.9246, the session low and resistance at 0.9341, the high of November 28.

Investors continued to watch negotiations between Democrats and Republicans to avoid the U.S. fiscal cliff, a set of spending cuts and tax increases due to come into effect on January 1 if lawmakers cannot reach an agreement on reducing the budget deficit.

Meanwhile, sentiment remained supported after Greece on Monday launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.

In addition, Spanish bond yields turned lower after Madrid formally requested a bailout to recapitalize its banking sector.

Elsewhere, the Swissie was lower against the euro with EUR/CHF advancing 0.47%, to hit 1.2144.

Also Tuesday, Spain's Employment Ministry said that the number of unemployed people rose less-than-expected in November, rising by 74,300 after an increase of 128,200 the previous month.

Analysts had expected the number of unemployed people to rise by 90,500 in November.

Later in the day, finance ministers from the European Union were to hold talks in Brussels.


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