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Forex - USD/CHF rises amid fresh euro zone debt concerns

Published 06/29/2010, 07:56 AM
USD/CHF
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EUR/CHF
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Investing.com – The U.S. dollar was up against the Swiss franc on Tuesday, amid rising risk aversion ahead of a deadline for European banks to repay money to the European Central Bank.

USD/CHF hit 1.0902 during European late morning trade, a daily high; the pair subsequently consolidated at 1.0879, gaining 0.09%.

The pair was likely to find support at 1.0816, Monday’s low, and resistance at 1.1047, last Friday’s high.

On Thursday, a euro zone refinancing program is due to expire and European banks must repay EUR 442 billion to the ECB, which could result in a liquidity shortfall in the financial system of over EUR 100 billion.

Earlier Tuesday, ECB Governing Council member Christian Noyer said the bank would do everything possible to ensure the expiry of the one-year funding program went smoothly.

Meanwhile, the Swiss franc was up against the euro, with EUR/CHF shedding 0.56% to hit 1.3267.

Later in the day, the Conference Board, a research group, was to publish a key survey of U.S. consumer confidence, a leading indicator of consumer spending. A report on the U.S. housing market, the S&P/CS Composite-20 HPI, was also due to be published.

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