Investing.com - The U.S. dollar was steady against the U.S. dollar in thin year-end trade on Wednesday, following a successful Italian bond auction and disappointing Swiss economic data.
USD/CHF hit 0.9331 during European late morning trade, the pair’s lowest since December 22; the pair subsequently consolidated at 0.9337, easing 0.04%.
The pair was likely to find support at 0.9266, the low of December 20 and resistance at 0.9414, the high of December 16.
Trading volumes remained low seeing as many traders closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing volatility.
Italy’s Treasury sold EUR9 billion euros of six-month bills, at an average yield of 3.25%, down from 6.50% in a previous auction in November. The country also sold EUR1.73 of two-year zero coupons at 5%.
Following the auction, the yield on Italy’s 10-year bonds slightly eased below the 7% threshold, a level widely seen as unsustainable.
Meanwhile, data showed that Switzerland’s leading economic barometer declined significantly more-than-expected in December, falling to a new low for the second consecutive month.
In a report, the KOF Economic Research Agency said its index of 12 leading indicators declined to 0.01 in December, from November’s reading of 0.34, which was revised down from a previously reported 0.35.
Analysts had expected the index to fall to 0.23 in December.
The Swissie was moderately higher against the U.S. dollar with EUR/CHF inching down 0.03%, to hit 1.2205.
Italy was also scheduled to auction EUR8.5 billion euros of debt due in 2014, 2018, 2021 and 2022 on Thursday.
USD/CHF hit 0.9331 during European late morning trade, the pair’s lowest since December 22; the pair subsequently consolidated at 0.9337, easing 0.04%.
The pair was likely to find support at 0.9266, the low of December 20 and resistance at 0.9414, the high of December 16.
Trading volumes remained low seeing as many traders closed books to lock in profit before the end of the year, reducing liquidity in the market and increasing volatility.
Italy’s Treasury sold EUR9 billion euros of six-month bills, at an average yield of 3.25%, down from 6.50% in a previous auction in November. The country also sold EUR1.73 of two-year zero coupons at 5%.
Following the auction, the yield on Italy’s 10-year bonds slightly eased below the 7% threshold, a level widely seen as unsustainable.
Meanwhile, data showed that Switzerland’s leading economic barometer declined significantly more-than-expected in December, falling to a new low for the second consecutive month.
In a report, the KOF Economic Research Agency said its index of 12 leading indicators declined to 0.01 in December, from November’s reading of 0.34, which was revised down from a previously reported 0.35.
Analysts had expected the index to fall to 0.23 in December.
The Swissie was moderately higher against the U.S. dollar with EUR/CHF inching down 0.03%, to hit 1.2205.
Italy was also scheduled to auction EUR8.5 billion euros of debt due in 2014, 2018, 2021 and 2022 on Thursday.