Forex - USD/CHF higher as markets eye E.Z. developments
Investing.com
Published Mar 29, 2012 06:02AM ET
Investing.com - The U.S. dollar was higher against the Swiss franc on Thursday, as investors remained cautious ahead of a key meeting of euro zone finance ministers on Friday to discuss the size of the bailout fund for indebted countries.
USD/CHF hit 0.9073 during European morning trade, the daily high; the pair subsequently consolidated at 0.9076, rising 0.27%.
The pair was likely to find support at 0.9015, Tuesday’s low and resistance at 0.9113, the high of February 23.
Euro zone ministers were expected to decide at a meeting in Copenhagen on Friday to run the EUR500 billion permanent European Stability Mechanism alongside the EUR200 billion committed by the temporary fund, the European Financial Stability Facility.
German Chancellor Angela Merkel bowed to pressure earlier in the week to support an enlarged firewall, following calls from the International Monetary Fund to bolster the region’s bailout capacity amid mounting concerns over Portugal and Spain.
The greenback remained under pressure, however, after Tuesday’s weaker-than-expected economic data fanned fresh concerns over the level of the country’s recovery.
The U.S. Commerce Department said that durable goods orders rose 2.2% in February, partially reversing the previous month’s revised 3.6% decline, but falling short of expectations for a 3.0% increase.
Elsewhere, the Swissie was steady against the euro with EUR/CHF dipping 0.01%, to hit 1.2053.
Later in the day, the U.S. was to publish government data on unemployment claims and final data on fourth quarter gross domestic product. Federal Reserve Chairman Ben Bernanke was also due to speak.
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Written By: Investing.com
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