Forex – The Swiss franc was up against the U.S. dollar on Monday, surging to hit a fresh 2-day high, as risk tolerance decreased amid fears that the global economic recovery is stalling.
USD/CHF hit 1.0030 during European morning trade, the pair's lowest since September 16; the pair subsequently consolidated at 1.0045, falling 0.56%.
The pair was likely to find support at 0.9946, the low of September 15 and a 9-month low and resistance at 1.0181, last Friday's high.
Risk aversion mounted ahead of a meeting by Federal Reserve policy makers on Tuesday. Continuing high levels of unemployment in the U.S. have fuelled speculation that the central bank could unveil fresh quantitative easing measures.
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
The Swissy was also up against the euro, with EUR/CHF shedding 0.17% to hit 1.3153.
Later in the day, the U.S. was to publish industry data on home sales.
USD/CHF hit 1.0030 during European morning trade, the pair's lowest since September 16; the pair subsequently consolidated at 1.0045, falling 0.56%.
The pair was likely to find support at 0.9946, the low of September 15 and a 9-month low and resistance at 1.0181, last Friday's high.
Risk aversion mounted ahead of a meeting by Federal Reserve policy makers on Tuesday. Continuing high levels of unemployment in the U.S. have fuelled speculation that the central bank could unveil fresh quantitative easing measures.
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
The Swissy was also up against the euro, with EUR/CHF shedding 0.17% to hit 1.3153.
Later in the day, the U.S. was to publish industry data on home sales.