Forex - USD/CHF steady amid sustained Greece concerns
Investing.com
Published Feb 22, 2012 06:15AM ET
Investing.com - The U.S. dollar ticked up and down between small gains and losses against the Swiss franc on Wednesday, as markets continued to examine the details of the new bailout deal for Greece while the outlook for global growth was hit by data showing that the euro zone could slip back into a recession.
USD/CHF hit 0.9104 during European morning trade, the session low; the pair subsequently consolidated at 0.9124, inching up 0.01%.
The pair was likely to find support at 0.9082, Tuesday’s low and a two-month low and resistance at 0.9177, Monday’s high.
Market sentiment remained subdued amid ongoing uncertainty over whether Greece can follow through with fiscal reforms after euro zone finance ministers signed off on a EUR130 billion rescue package on Tuesday, removing the risk of an imminent default in March.
Meanwhile, preliminary data showed that manufacturing activity in the euro zone improved less-than-expected in February, remaining in contraction territory for the seventh consecutive month, while service sector activity contracted unexpectedly.
Data from Germany and France showed modest growth in business activity, albeit at a slower pace than in January, but activity in peripheral euro zone nation’s showed a steep decline this month.
The disappointing data underlined concerns over the impact of the fiscal crisis in the region on Europe’s economy.
Earlier in the day, a preliminary report showed that China’s manufacturing sector contracting for a fourth straight month in February, adding to concerns over a slowdown in the world’s second largest economy.
The Swissie was fractionally higher against the euro, with EUR/CHF dipping 0.05% to hit 1.2068.
Later in the day, the U.S. was to publish industry data on existing home sales.
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Written By: Investing.com
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