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Forex - Dollar hits 11-month high vs. Swissy on Europe debt fears

Published 05/05/2010, 01:55 AM
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Investing.com – The U.S. dollar jumped to an 11-month high against the Swiss franc on Wednesday, as traders were gripped by fears that Greece's debt problems would spread across the euro zone, a key trading partner of Switzerland's.

USD/CHF hit 1.1073 during late Asian trade, its highest since May 20, 2009; the pair subsequently consolidated around 1.1046, gaining 1.14% . The pair was likely to find resistance at 1.1219, the high of May 18, 2009, and support at 1.0747, last Friday's low.

Meanwhile, Greek workers declared a general strike on Wednesday, halting flights, trains and ferries and paralyzing public services, to protest the harsh austerity measures to which the government agreed in return for a EUR 110 billion bailout.

The Swissy also slid a tad versus sterling on Wednesday, with GBP/CHF gaining 0.11% to reach 1.6721.

Later in the day, the market research firm Markit will publish a report on the euro zone services sector. The payroll processing firm ADP, meanwhile, will publish key data on U.S. nonfarm employment change and the Institute of Supply Management, an industry group, will release a closely watched monthly survey of U.S. purchasing managers, excluding the manufacturing sector.

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