Investing.com – The U.S. dollar slipped against the Swiss franc on Wednesday, erasing early gains but remained close to the 3-day high as heightened growth expectations for the U.S. economy supported the dollar.
USD/CHF retreated from 0.9915, the pair’s highest since last Friday, to hit 0.9866 during European morning trade, slipping 0.08%.
The pair was likely to find support at 0.9756, Tuesday’s low and resistance at 1.0052, the high of December 2.
Earlier in the day, U.S. Treasury yields surged to near 6-month highs, triggering broad selling of fixed-income securities and boosting demand for the dollar.
The sharp gains in bond yields followed U.S. President Barack Obama’s proposal to extend tax cuts for two years. The tax cuts could potentially reduce pressure on the Federal Reserve to extend its USD600 billion bond-purchase program, while boosting U.S. growth but triggered fears over a longer-term rise in the national debt level.
The Swissy was also up against the euro, with EUR/CHF shedding 0.20% to hit 1.3069.
Elsewhere, the Irish austerity budget on Tuesday passed the first in a series of votes to tackle what Finance Minister Brian Lenihan called the “worst crisis in our history.”
USD/CHF retreated from 0.9915, the pair’s highest since last Friday, to hit 0.9866 during European morning trade, slipping 0.08%.
The pair was likely to find support at 0.9756, Tuesday’s low and resistance at 1.0052, the high of December 2.
Earlier in the day, U.S. Treasury yields surged to near 6-month highs, triggering broad selling of fixed-income securities and boosting demand for the dollar.
The sharp gains in bond yields followed U.S. President Barack Obama’s proposal to extend tax cuts for two years. The tax cuts could potentially reduce pressure on the Federal Reserve to extend its USD600 billion bond-purchase program, while boosting U.S. growth but triggered fears over a longer-term rise in the national debt level.
The Swissy was also up against the euro, with EUR/CHF shedding 0.20% to hit 1.3069.
Elsewhere, the Irish austerity budget on Tuesday passed the first in a series of votes to tackle what Finance Minister Brian Lenihan called the “worst crisis in our history.”