Investing.com - The U.S. dollar weakened against the Swiss franc on Thursday, as the yield on Italian 10-year bonds fell back below 7% amid speculation that the European Central Bank was buying Italian bonds in the secondary market.
USD/CHF hit 0.9054 during European morning trade, the daily low; the pair subsequently consolidated at 0.9058, edging down 0.41%.
The pair was likely to find support at 0.8867, the low of July 11 and resistance at 0.9216, the high of October 3.
Earlier in the day, Italy auctioned EUR5 billion of one-year Treasury bills at an average yield of 6.08%.
Following the auction, the yield on 10-year Italian bonds eased to 6.97% after rising past the 7% level at which Greece, Ireland and Portugal sought international bailouts on Wednesday.
Meanwhile, Greek leaders were still struggling determine who will head the new coalition government.
Earlier Thursday, International Monetary Fund head Christine Lagarde called for political clarity to be restored in Italy and Greece in order to calm market volatility.
The Swissie was up against the euro with EUR/CHF edging down 0.02%, to trade at 1.2316.
Also Thursday, the European Central Bank said that a significant downward revision to its 2012 GDP forecast was very likely, adding that some risks to economic outlook have been materializing.
USD/CHF hit 0.9054 during European morning trade, the daily low; the pair subsequently consolidated at 0.9058, edging down 0.41%.
The pair was likely to find support at 0.8867, the low of July 11 and resistance at 0.9216, the high of October 3.
Earlier in the day, Italy auctioned EUR5 billion of one-year Treasury bills at an average yield of 6.08%.
Following the auction, the yield on 10-year Italian bonds eased to 6.97% after rising past the 7% level at which Greece, Ireland and Portugal sought international bailouts on Wednesday.
Meanwhile, Greek leaders were still struggling determine who will head the new coalition government.
Earlier Thursday, International Monetary Fund head Christine Lagarde called for political clarity to be restored in Italy and Greece in order to calm market volatility.
The Swissie was up against the euro with EUR/CHF edging down 0.02%, to trade at 1.2316.
Also Thursday, the European Central Bank said that a significant downward revision to its 2012 GDP forecast was very likely, adding that some risks to economic outlook have been materializing.