Investing.com - The U.S. dollar edged higher against the Swiss franc on Monday, but remained close to a four-month low after the Federal Reserve announced a new round of quantitative easing last week.
USD/CHF hit 0.9296 during European late morning trade, the pair's highest since September 14; the pair subsequently consolidated at 0.9274, adding 0.08%.
The pair was likely to find support at 0.9200, the low of May 8 and resistance at 0.9394, the low of September 14.
The greenback remained under pressure after the Fed announced last week that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.
The bank also said it expects to keep short-term interest rates at record low levels through at least mid-2015, six months longer than previously anticipated.
But demand for the safe haven dollar found some support after European Central Bank policymaker Ewald Nowotny earlier reminded Spain that it needs to apply for a rescue package to qualify for the central bank’s bond-buying program.
Reuters reported that Spanish Prime Minister Mariano Rajoy is looking to delay any request for aid, preferring an alternative strategy if possible, and that the government is preparing to unveil a further economic reform package late September.
Elsewhere, the Swissie was fractionally higher against the euro with EUR/CHF easing 0.07%, to hit 1.2159.
Also Monday, the ECB said that its current account fell to EUR9.7 billion in July, from EUR14.3 billion the previous month. Analysts had expected the bank's current account to decline to EUR10 billion in July.
Later in the day, the U.S. was to publish an index of manufacturing activity in the New York area.
USD/CHF hit 0.9296 during European late morning trade, the pair's highest since September 14; the pair subsequently consolidated at 0.9274, adding 0.08%.
The pair was likely to find support at 0.9200, the low of May 8 and resistance at 0.9394, the low of September 14.
The greenback remained under pressure after the Fed announced last week that it would buy USD40 billion of mortgage-backed securities every month and would keep buying them until the job market improves.
The bank also said it expects to keep short-term interest rates at record low levels through at least mid-2015, six months longer than previously anticipated.
But demand for the safe haven dollar found some support after European Central Bank policymaker Ewald Nowotny earlier reminded Spain that it needs to apply for a rescue package to qualify for the central bank’s bond-buying program.
Reuters reported that Spanish Prime Minister Mariano Rajoy is looking to delay any request for aid, preferring an alternative strategy if possible, and that the government is preparing to unveil a further economic reform package late September.
Elsewhere, the Swissie was fractionally higher against the euro with EUR/CHF easing 0.07%, to hit 1.2159.
Also Monday, the ECB said that its current account fell to EUR9.7 billion in July, from EUR14.3 billion the previous month. Analysts had expected the bank's current account to decline to EUR10 billion in July.
Later in the day, the U.S. was to publish an index of manufacturing activity in the New York area.