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Forex - USD/CHF steady as markets eye EU talks

Published 12/07/2011, 05:16 AM
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EUR/CHF
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Investing.com - The U.S. dollar was almost unchanged against the Swiss franc on Wednesday, as safe haven demand waned amid speculation that European leaders will agree this week on plans to handle the region’s debt crisis.

USD/CHF hit 0.9228 during European morning trade, the daily low; the pair subsequently consolidated at 0.9261, inching down 0.01%.

The pair was likely to find support at 0.9138, the low of November 29 and resistance at 0.9329, the high of November 25.

Later this week, European leaders are to discuss proposed changes to EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc.

Meanwhile, investors were also eyeing the European Central Bank’s policy decision on Thursday, as the central bank is likely to cut interest rates by 0.25% to 1%.

Elsewhere, Greek Prime Minister Lucas Papademos received parliamentary approval for the 2012 budget, a financial plan that aims to nearly halve the deficit shortfall from a debt writedown.

The Swissie was down against the euro with EUR/CHF rising 0.10%, to hit 1.2421.
Later in the day, the U.S. was to release government data on crude oil stockpiles.


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