Forex - Dollar hits daily low against Swiss franc on EZ debt fears
Investing.com
Published May 24, 2011 06:01AM ET
USD/CHF hit 0.8801 during European morning trade, the daily low; the pair subsequently consolidated at 0.8804, shedding 0.36%.
The pair was likely to find short-term support at 0.8746, Friday’s low and an eight-day low and resistance at 0.8937, the high of May 17.
Worries about euro zone sovereign debt intensified after Standard & Poor's cut its outlook for Italy to negative from stable on Saturday, while the weekend defeat of Spain's ruling socialists in local elections raised worries about the country’s ability to meet fiscal targets.
Meanwhile, Swiss National Bank Vice Chairman Thomas Jordan said Monday that he was "very worried" about the rise in the Swiss franc, but added that interest rates can remain low for a relatively long period if inflation risks are benign.
On Monday, the Swiss franc hit its highest level against the euro since the single currency was launched in 1999 and the currency has also hit a series of record highs against the dollar in recent months.
Elsewhere, the Swissie was slightly lower against the euro, with EUR/CHF easing up 0.08% to hit 1.2424.
Later in the day, the U.S. was to publish government data on new home sales.
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Written By: Investing.com
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