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Forex - USD/CHF edges higher after downbeat E.Z. data

Published 01/08/2013, 05:10 AM
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Investing.com - The U.S. dollar edged higher against the Swiss franc on Tuesday, after the release of downbeat retail sales and unemployment data from the euro zone, while markets remained jittery amid sustained U.S. fiscal worries.

USD/CHF hit 0.9227 during European morning trade, the session high; the pair subsequently consolidated at 0.9219, adding 0.07%.

The pair was likely to find support at 0.9176, the low of January 3 and resistance at 0.9248, the high of December 14.

Sentiment came under pressure after official data showed that retail sales in the euro zone rose 0.1% in November, less than the expected 0.3% increase, after a 0.7% decline the previous month.

A separate report showed that the unemployment rate in the single currency bloc ticked up to a new record high of 11.8% in November from 11.7% the previous month, in line with expectations.

In Switzerland, official data earlier showed that the unemployment rate remained unchanged at 3.0% last month, in line with expectations.

Meanwhile, overall market sentiment remained cautious amid uncertainty about continuing political wrangling in Washington over further U.S. budget cuts and raising the U.S. debt ceiling.

The Swissie was fractionally lower against the euro with EUR/CHF edging up 0.07%, to hit 1.2093.

Also Tuesday, Japanese Finance Minister Taro Aso said his government would buy bonds issued by the European Stability Mechanism, the euro zone's permanent bailout fund, in order to help stabilize the financial situation in the bloc.


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