Investing.com - The U.S. dollar was steady against the Swiss franc on Wednesday, as investors remained cautious amid ongoing U.S. budget negotiations and growing concerns over a possible debt default.
USD/CHF hit 0.9152 during European morning trade, the session high; the pair subsequently consolidated at 0.9122, easing up 0.01%.
The pair was likely to find support at 0.9064, the low of October 14 and resistance at 0.9235, the high of August 28.
On Tuesday, Fitch ratings agency placed its triple-A rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
In Switzerland, data showed that the ZEW economic expectations index rose to 24.9 in September, from a reading of 16.3 the previous month. Analysts had expected the index to rise to 21.0 last month.
The Swissie was steady against the euro with EUR/CHF inching 0.01% higher, to hit 1.2345.
Also Wednesday, data showed that the annual rate of consumer inflation in the euro zone was unchanged from a preliminary estimate of 1.1% in September.
A separate report showed that the euro zone’s trade surplus widened to EUR12.3 billion in August from EUR11 billion in April, broadly in line with forecasts.
USD/CHF hit 0.9152 during European morning trade, the session high; the pair subsequently consolidated at 0.9122, easing up 0.01%.
The pair was likely to find support at 0.9064, the low of October 14 and resistance at 0.9235, the high of August 28.
On Tuesday, Fitch ratings agency placed its triple-A rating on the U.S. on “rating watch negative” and said a downgrade is possible.
The ratings agency said the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were continuing negotiations aimed at ending the fiscal impasse, after a last minute deal put forward by House Republicans collapsed on Tuesday.
In Switzerland, data showed that the ZEW economic expectations index rose to 24.9 in September, from a reading of 16.3 the previous month. Analysts had expected the index to rise to 21.0 last month.
The Swissie was steady against the euro with EUR/CHF inching 0.01% higher, to hit 1.2345.
Also Wednesday, data showed that the annual rate of consumer inflation in the euro zone was unchanged from a preliminary estimate of 1.1% in September.
A separate report showed that the euro zone’s trade surplus widened to EUR12.3 billion in August from EUR11 billion in April, broadly in line with forecasts.