Forex - USD/CHF hits four-month high in risk-off trade

Investing.com - The U.S. dollar rose to a four-month high against the Swiss franc on Monday, as speculation over a possible Greek exit from the euro zone mounted, while an auction of Spanish government bonds saw the country’s short-term borrowing costs rise.

USD/CHF hit 0.9338 during European morning trade, the pair’s highest since January 25; the pair subsequently consolidated at 0.9925, gaining 0.29%.

The pair was likely to find support at 0.9306, the session low and resistance at 0.9377, the high of January 23.

On Sunday, Alexis Tsipras, the head of Greece’s largest anti-bailout party Syriza, rejected calls to join a coalition government, fuelling fears that a fresh round of elections is becoming inevitable and casting the country’s ability to uphold its fiscal commitments into doubt.

Meanwhile, Spain sold EUR2.9 billion of 12 and 18-month bonds, slightly below its maximum target of EUR3 billion. The yield on the 12-month bonds rose to 2.98%, from 2.62% previously, while the yield on the 18-month bonds increased to 3.3%, from 3.11%.

Adding to the bearish sentiment, official data showed that industrial production in the euro zone fell unexpectedly in March, adding to fears over the health of the region’s economy.

Eurostat, the European statistics agency said industrial production dipped by a seasonally adjusted 0.3% in March, defying expectations for a 0.4% increase.

The euro was little changed against the Swiss franc, with EUR/CHF dipping 0.01% to hit 1.2010.

In Switzerland, official data showed that producer prices dipped 0.1% in April, declining for the first time in five months and defying expectations for a 0.3% increase.

Year-over-year, Swiss producer prices fell 2.3% in April, compared to expectations for a 2.1% decline, after dropping at a rate of 2.0% in March.


USD/CHF%20hit%200.9338%20during%20European%20morning%20trade,%20the%20pair%E2%80%99s%20highest%20since%20January%2025;%20the%20pair%20subsequently%20consolidated%20at%200.9925,%20gaining%200.29%.&langpair=auto%7Cauto" target="_blank" rel="nofollow">USD/CHF hit 0.9338 during European morning trade, the pair’s highest since January 25; the pair subsequently consolidated at 0.9925, gaining 0.29%.>>