Forex - USD/CHF hits 2-week low as ECB hopes buoy sentiment
Investing.com
Published Aug 21, 2012 06:17AM ET
USD/CHF hit 0.9964 during European morning trade, the pair’s lowest since August 7; the pair subsequently consolidated at 0.9966, shedding 0.65%.
The pair was likely to find near-term support at 0.9656, the low of August 7 and a three-week low and resistance at 0.9730, the session high.
Earlier Tuesday, the U.K.’s Telegraph newspaper said it could confirm weekend reports that the ECB may set a cap on peripheral euro zone bond yields at its next policy meeting in September.
On Monday, the ECB dismissed the reports, saying it was “misleading” to report on decisions which have not yet been taken.
Speculation over the possibility of ECB intervention saw Spanish borrowing costs fall at an auction of short-term government debt, with Madrid successful auctioning EUR4.5 billion of bills, the top end of the target range.
Meanwhile, investors were looking ahead to a series of euro zone meetings later in the week, amid hopes that leaders would make some progress on steps to the stem the crisis in the region.
The Swissie was little changed against the euro, with EUR/CHF dipping 0.01% to 1.2009.
Trade looked likely to remain quiet on Tuesday, with no significant economic data releases on the calendar, while volumes were thin with many market participants on summer holidays.
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Written By: Investing.com
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