Investing.com - The U.S. dollar came off the session high against the Swiss franc in quiet trade on Wednesday, but losses were limited as ongoing concerns over the outlook for global growth and uncertainty over a possible bailout for Spain supported safe haven demand.
USD/CHF pulled back from 0.9431, the session high, to hit 0.9390 during European afternoon trade, slipping 0.13%.
The pair was likely to find support at 0.9321, Tuesday’s low and resistance at 0.9431, the session high and a seven-day high.
Demand for the dollar remained supported amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.
Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.
Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.
The Swissie was fractionally higher against the euro, with EUR/CHF dipping 0.05% to 1.2109.
Also Wednesday, Swiss National Bank Chairman Thomas Jordan said the 1.20 per euro exchange rate floor the central bank imposed in September 2011 continued to be the correct policy for the foreseeable future.
USD/CHF pulled back from 0.9431, the session high, to hit 0.9390 during European afternoon trade, slipping 0.13%.
The pair was likely to find support at 0.9321, Tuesday’s low and resistance at 0.9431, the session high and a seven-day high.
Demand for the dollar remained supported amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.
Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.
Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.
Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.
The Swissie was fractionally higher against the euro, with EUR/CHF dipping 0.05% to 1.2109.
Also Wednesday, Swiss National Bank Chairman Thomas Jordan said the 1.20 per euro exchange rate floor the central bank imposed in September 2011 continued to be the correct policy for the foreseeable future.