Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - USD/CHF slips lower, eyes on Italy

Published 02/27/2013, 06:23 AM
Updated 02/27/2013, 06:24 AM
USD/CHF
-
EUR/CHF
-
Investing.com - The U.S. dollar slipped lower against the Swiss franc on Wednesday, as sentiment slightly improved after a successful Italian bond auction, although demand for the safe haven greenback remained supported by worries over Italy's political deadlock.

USD/CHF hit 0.9290 during European morning trade, the session low; the pair subsequently consolidated at 0.9308, slipping 0.11%.

The pair was likely to find support at 0.9273, the low of February 21 and resistance at 0.9347, the high of January 22.

Italy sold EUR4 billion worth of ten-year debt at an average yield of 4.83%, up from 4.17% at a similar auction last month and EUR2.5 billion of five-year government bonds at an average yield of 3.59%, up from 2.94% in January.

The yield on Italian 10-year bonds stood at 4.84% following the auction, close to the highest levels since December.

Meanwhile, markets were jittery as investors awaited political developments in Italy, after general elections ended with no party in control of the Senate.

Investors were also looking ahead to a second day of Congressional testimony by Federal Reserve Chairman Ben Bernanke later in the trading day. Bernanke defended the bank's easing program on Tuesday, saying that the benefits outweighed the possible costs.

In Switzerland, the KOF research agency said its economic barometer fell to 1.03 in February from a reading of 1.12 the previous month, compared to expectations for a fall to 1.00.

The Swissie was lower agains the euro with EUR/CHF adding 0.12%, to hit 1.2186.

Later in the day, the U.S. was to publish official data on durable goods orders and pending home sales later Wednesday, while European Central Bank President Mario Draghi was to speak an event in Germany.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.