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Forex - USD/CHF hits session high as market sentiment sours

Published 06/25/2012, 06:14 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar advanced to a session high against the Swiss franc on Monday, as sustained concerns over a slowdown in global growth and the debt crisis in the euro zone weighed on investor sentiment.

USD/CHF hit 0.9622 during European morning trade, the pair’s highest since June 13; the pair subsequently consolidated at 0.9618, gaining 0.68%.

The pair was likely to find support at 0.9542, Friday’s low and resistance at 0.9695, the high of June 4.

Market sentiment soured ahead of a European Union summit due to begin later in the week, amid growing doubts over whether leaders will make any progress towards greater fiscal integration and allowing the bloc's rescue funds to buy government debt.

Meanwhile, fears that the debt crisis in Europe is creating a drag on global growth continued to weigh, following a string of data late last week which pointed to weak U.S. manufacturing activity, a shrinking Chinese manufacturing sector and slowing business activity across the single currency bloc.

Earlier Monday, Spain’s government formally requested aid of up to EUR100 billion for its banking sector from its euro zone partners. Spain’s economy minister said the amount should be enough to cover the needs of all banks and provide an additional security buffer.

The request came after the results of an independent audit last week indicated that Madrid would need a rescue package of as much as EUR62 billion to bailout its banks.

The Swissie was steady against the euro, with EUR/CHF unchanged on the day at 1.2008.

Later Monday, the U.S. was to release official data on new home sales.


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