Forex - USD/CHF trims losses amid euro zone concerns

Published 01/24/2012, 05:59 AM
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EUR/CHF
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Investing.com - The U.S. dollar trimmed losses against the Swiss franc on Tuesday, easing off a six-week low as investor confidence waned after weak euro zone industrial data and amid uncertainty over the restructuring of Greece’s debt.

USD/CHF pulled back from 0.9236, the pair’s lowest since December 8, to hit 0.9276 during European morning trade, still down 0.01%.

The pair is likely to find support at 0.9197, the low of December 6 and resistance at 0.9329, the high of November 25.

Official data showed that industrial new orders in the euro zone declined in November, albeit at a slower pace than expected.

Sentiment strengthened earlier after preliminary data showed that manufacturing activity in the single currency bloc rose at the fastest pace since August this month, easing concerns over the impact of the region’s debt crisis on the economy.

Meanwhile, markets were also jittery after euro zone ministers called on private bond holders to drop demands that new bonds to be issued in exchange for their existing Greek bonds will carry an interest rate of 4%.

Greece stated that it was not willing to pay a rate of more than 3.5%, a position which the European Union and the International Monetary Fund supports.

Elsewhere, the Swissie was moderately higher against the euro with EUR/CHF shedding 0.07%, to hit 1.2062.

Later in the day, Swiss National Bank policymaker Jean-Pierre Danthine was due to speak.

Meanwhile, EU finance ministers were to hold discussions in Brussels throughout the day.


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