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Forex - USD/CHF hits 2-month high in risk-off trade

Published 11/13/2012, 04:11 AM
Updated 11/13/2012, 04:13 AM
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Investing.com - The U.S. dollar edged up to a two-month high against the Swiss franc on Tuesday, as renewed concerns over the handling of Greece's debt woes weighed on demand for riskier assets.

USD/CHF hit 0.9511 during European morning trade, the pair's highest since September 7; the pair subsequently consolidated at 0.9494, adding 0.13%.

The pair was likely to find support at 0.9436, the low of September 10 and resistance at 0.9559, the high of July 2.

At a meeting in Brussels on Monday, euro zone finance ministers and the International Monetary Fund failed to agree on a long-term plan to reduce Greece's debt, preventing the disbursement of immediate aid to Athens.

They gave Greece until 2016 to cut the deficit to 2% of gross domestic product, but put off until November 20 a decision on how to cover additional Greek needs of as much as EUR32.6 billion and left unclear whether the IMF will continue to contribute.

Markets also remained jittery amid ongoing concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.

In Switzerland, official data earlier showed that producer price inflation fell unexpectedly in October, ticking down 0.01% after a 0.3% rise the previous month.

Analysts had expected producer price inflation to rise by 0.2% in October.

Elsewhere, the Swissie was almost unchanged against the euro with EUR/CHF dipping 0.05%, to hit 1.2046.

Later in the day, the U.S. was to release official data on the federal budget balance.


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