Forex - USD/CHF hits 1-week low in risk-on trade
Investing.com
Published Feb 20, 2012 06:03AM ET
Investing.com - The U.S. dollar dropped to a one-week low against the Swiss franc on Monday, as risk appetite sharpened on the back of optimism that Greece was moving closer to securing a second bailout.
USD/CHF hit 0.9125 during European morning trade, the pair’s lowest since February 13; the pair subsequently consolidated at 0.9126, falling 0.79%.
The pair was likely to find support at 0.9088, the low of February 9 and a two-month low and resistance at 0.9177, the session high.
Speaking ahead of a meeting of euro zone finance ministers set for later Monday, Greek Finance Minister Evangelos Venizelos said negotiations on the EUR130 billion bailout and a linked debt restructuring deal would continue until the last minute but added that Greece has met all the conditions demanded by its creditors.
“We expect the long period of uncertainty, that benefitted neither the Greek economy nor the euro zone overall, to end today”, Venizelos said.
Without a bailout, Greece faces the threat of defaulting when a EUR14.5 billion bond redemption comes due on March 20.
Risk appetite was also bolstered after China’s central bank announced a decision to cut the reserve requirement ratios of major commercial lenders in an attempt to boost liquidity and spur growth in the world’s second largest economy.
The Swissie was almost unchanged against the euro, with EUR/CHF inching up 0.01% to hit 1.2088.
Trade volumes were expected to remain light throughout the day, as markets in the U.S. were to remain closed for the Presidents Day holiday.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.