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Forex - USD/CHF hits 2-day low as risk appetite wanes ahead of G-20

Published 11/11/2010, 04:34 AM
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Investing.com – The U.S. dollar snapped 4-days of gains against the Swiss franc on Thursday, falling to hit a 2-day low, as risk appetite waned ahead of the Group of 20 world economic summit.

USD/CHF hit 0.9670 during European morning trade, the pair’s lowest since November 9; the pair subsequently consolidated at 0.9698, shedding 0.10%.

The pair was likely to find support at 0.9586, the low of November 9, and resistance at 0.9823, the high of November 3.

Later in the day, G-20 leaders were to gather in Seoul, South Korea amid growing concerns about trade imbalances and currency controls.

The summit was expected to be closely watched by investors following the Federal Reserve’s decision last week to buy its own debt to keep borrowing costs near zero, which attracted criticism from other G-20 leaders including Germany and China.

Speaking ahead of the summit, U.S. Treasury Secretary Timothy Geithner said, “We think everyone’s going to have an interest in defusing some of the tension and agreeing on a multilateral process for helping resolve these pressures with less risk of financial market stress and political pressure”.

The Swissy was also up against the euro, with EUR/CHF falling 0.54% to hit 1.3307.

On Thursday, markets in the U.S. are closed in observance of Veterans Day. 


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