Investing.com - The U.S. dollar slid lower against the Swiss franc on Tuesday, as market sentiment strengthened on the back of an improved outlook for the U.S. economy but markets remained jittery as concerns over the debt crisis in the euro zone lingered.
USD/CHF ticked down to 0.9466, the pair’s lowest since last Thursday; the pair subsequently consolidated at 0.9480, sliding 0.14%.
The pair was likely to find support at 0.9313, the low of January 4 and resistance at 0.9594, Monday’s high and an 11-month high.
Market sentiment was buoyed after an upbeat start to earnings season lifted equities markets and supported the outlook for the U.S. economic recovery.
But the debt crisis in the euro zone remained in focus, as German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde prepared to meet later in the day, to discuss Greece’s bailout.
The Swiss franc strengthened briefly against the U.S. dollar on Monday, after Phillip Hildebrand stepped down as chairman of the Swiss National Bank, casting doubts over the central bank’s ability to maintain the minimum exchange rate floor of 1.20 per euro.
The franc quickly fell back after the SNB reiterated that it was ready to defend the exchange rate with the “utmost determination.”
Hildebrand’s resignation came in the wake of a controversial currency trade made by his wife, just weeks before the SNB intervened to curb the appreciation of the currency.
The Swiss franc was almost unchanged against the euro, with EUR/CHF inching up 0.02% to hit 1.2125.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable at 7.18%, while the yield on Spanish 10-year bonds was at 5.6%.
USD/CHF ticked down to 0.9466, the pair’s lowest since last Thursday; the pair subsequently consolidated at 0.9480, sliding 0.14%.
The pair was likely to find support at 0.9313, the low of January 4 and resistance at 0.9594, Monday’s high and an 11-month high.
Market sentiment was buoyed after an upbeat start to earnings season lifted equities markets and supported the outlook for the U.S. economic recovery.
But the debt crisis in the euro zone remained in focus, as German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde prepared to meet later in the day, to discuss Greece’s bailout.
The Swiss franc strengthened briefly against the U.S. dollar on Monday, after Phillip Hildebrand stepped down as chairman of the Swiss National Bank, casting doubts over the central bank’s ability to maintain the minimum exchange rate floor of 1.20 per euro.
The franc quickly fell back after the SNB reiterated that it was ready to defend the exchange rate with the “utmost determination.”
Hildebrand’s resignation came in the wake of a controversial currency trade made by his wife, just weeks before the SNB intervened to curb the appreciation of the currency.
The Swiss franc was almost unchanged against the euro, with EUR/CHF inching up 0.02% to hit 1.2125.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable at 7.18%, while the yield on Spanish 10-year bonds was at 5.6%.