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Forex - USD/CHF up after Swiss trade balance data, focus on Greece

Published 02/21/2012, 05:57 AM
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Investing.com - The U.S. dollar edged higher against the Swiss franc on Tuesday, after disappointing Swiss trade balance data while markets remained jittery after the announcement of a long-awaited Greek bailout deal.

USD/CHF hit 0.9150 during European late morning trade, the daily high; the pair subsequently consolidated at 0.9125, edging up 0.10%.

The pair was likely to find support at 0.9065, the low of November 30 and resistance at 0.9177, Monday’s high.

Official data showed earlier that Switzerland’s trade surplus narrowed unexpectedly in January, falling to CHF1.55 billion from a surplus of CHF2.01 billion the previous month.

Analysts had expected Switzerland’s trade surplus to widen to CHF2.50 billion in January.

Meanwhile, euro zone finance ministers agreed on the details of a EUR130 billion financial package for Greece, which will cut the country’s debt-to-gross domestic product ratio to 120.5% of GDP in eight years and the rate of the original bailout loan is to be reduced.

The country’s private creditors accepted a more than 53% voluntary write down on the value on the bonds they hold.

However, investors remained cautious as concerns over the implementation of the package lingered, while the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said that "additional debt relief" will be required in the future.

Elsewhere, the Swissie was fractionally lower against the euro with EUR/CHF inching up 0.03%, to hit 1.2074.

Also Tuesday, European Union finance ministers were scheduled to meet throughout the day.


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