Forex - USD/CHF trading in narrow range as Korea tensions soar

Published 11/24/2010, 04:44 AM
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Investing.com – The U.S. dollar was trading in a narrow range against the Swiss franc on Wednesday, swinging between small gains and losses as tensions in Korea soared, exacerbating risk aversion.

USD/CHF hit 0.9990 during European morning trade, the pair’s highest since November 19, the pair subsequently consolidated at 0.9966, shedding 0.06%.

The pair was likely to find support at 0.9876, Monday’s low and resistance at 1.0073, the high of September 21.

Earlier in the day, North Korea’s official KCNA news agency said that South Korea was driving the peninsula to the “brink of war” with "reckless military provocation" and by postponing humanitarian aid.

On Tuesday, North Korean artillery fired shells onto a South Korean island close to a disputed sea border, in one of the most serious incidents on the peninsula since the end of the Korean War in 1953. The Seoul government said two South Korean civilians and two soldiers were killed and houses set ablaze in the attack.

From Washington, U.S. President Barack Obama condemned North Korea’s attacks as ‘an outrageous provocative act’.

Meanwhile, the Swissy was up against the euro, with EUR/CHF shedding 0.375 to hit 1.3279.

Later in the day, the U.S. was to release a slew of data ahead of the Thanksgiving holiday, with a weekly report on initial jobless claims as well as data on personal spending, durable goods orders and new home sales. The country was also to publish revised data on consumer sentiment and inflation expectations.

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