Investing.com - The safe haven U.S. dollar pushed higher against the Swiss franc on Monday, as optimism arising out of last week's European Union summit faded and concerns about global growth re-emerged.
USD/CHF hit 0.9525 during European morning trade, the session high; the pair subsequently consolidated at 0.9520, gaining 0.35%.
The pair was likely to find support at 0.9462, Friday’s low and resistance at 0.9628, the high of June 25.
At the end of a two-day summit on Friday, European leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
Markets rallied following the announcement, as expectations for concrete progress on dealing with the crisis had faded in the run up to the talks.
But market sentiment cooled, amid questions over the long-term effectiveness of the measures in addressing the root causes of the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
Meanwhile, concerns over global growth resurfaced after official data showed that the unemployment rate in the euro zone rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
Earlier Monday, data showed that China’s HSBC PMI posted a reading of 48.2 in June, little changed from an initial estimate of 48.1, remaining in contraction territory for the eighth successive month.
In Switzerland, official data showed that retail sales jumped 6.2% year-over-year in May, outstripping expectations for a 5.0% gain.
Another report showed that Swiss manufacturing activity improved unexpectedly in June, but remained in contraction territory for the third consecutive month.
The Swiss SVME PMI rose to a seasonally adjusted 48.1 in June from a reading of 45.4 in May. Analysts had expected the index to tick down to 45.0.
The Swissie was fractionally lower against the euro, with EUR/CHF inching up 0.04% to 1.2015.
Later in the day, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.
USD/CHF hit 0.9525 during European morning trade, the session high; the pair subsequently consolidated at 0.9520, gaining 0.35%.
The pair was likely to find support at 0.9462, Friday’s low and resistance at 0.9628, the high of June 25.
At the end of a two-day summit on Friday, European leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
Markets rallied following the announcement, as expectations for concrete progress on dealing with the crisis had faded in the run up to the talks.
But market sentiment cooled, amid questions over the long-term effectiveness of the measures in addressing the root causes of the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
Meanwhile, concerns over global growth resurfaced after official data showed that the unemployment rate in the euro zone rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
Earlier Monday, data showed that China’s HSBC PMI posted a reading of 48.2 in June, little changed from an initial estimate of 48.1, remaining in contraction territory for the eighth successive month.
In Switzerland, official data showed that retail sales jumped 6.2% year-over-year in May, outstripping expectations for a 5.0% gain.
Another report showed that Swiss manufacturing activity improved unexpectedly in June, but remained in contraction territory for the third consecutive month.
The Swiss SVME PMI rose to a seasonally adjusted 48.1 in June from a reading of 45.4 in May. Analysts had expected the index to tick down to 45.0.
The Swissie was fractionally lower against the euro, with EUR/CHF inching up 0.04% to 1.2015.
Later in the day, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.