Investing.com - The U.S. dollar rose to a one-month high against the Swiss franc on Monday, as ongoing concerns over the handling of the euro zone’s sovereign debt crisis and global economic growth boosted safe haven demand.
USD/CHF hit 0.9252 during European morning trade, the pair’s highest since March 16; the pair subsequently consolidated at 0.9241, rising 0.50%.
The pair was likely to find support at 0.9174, the low of February 16 and resistance at 0.9299, the high of February 16.
The greenback rallied broadly as the cost of insuring Spanish sovereign debt against default rose to a fresh record earlier, pushing the yield on the country’s 10-year bonds back above the 6% level, amid concerns that the country will be unable to meet deficit reduction targets.
Markets were also eyeing an auction of two and 10-year Spanish governments bonds later in the week, which was being seen as a key test of market appetite for the country’s debt.
Meanwhile, investors were also wary after official data showed that the Chinese economy grew at the slowest pace in almost three years in the first quarter, fuelling concerns over a slowdown in global growth.
In Switzerland, official data showed earlier that the producer price index rose less-than-expected last month, climbing 0.3%, disappointing expectations for a 0.5% gain after increasing by 0.8% in February.
Elsewhere, the Swissie was fractionally lower against the euro with EUR/CHF inching up 0.01%, to hit 1.2027.
Later in the day, the U.S. was to release government data on retail sales and a report on manufacturing activity in New York, as well as official data on net long-term securities transactions and business inventories.
USD/CHF hit 0.9252 during European morning trade, the pair’s highest since March 16; the pair subsequently consolidated at 0.9241, rising 0.50%.
The pair was likely to find support at 0.9174, the low of February 16 and resistance at 0.9299, the high of February 16.
The greenback rallied broadly as the cost of insuring Spanish sovereign debt against default rose to a fresh record earlier, pushing the yield on the country’s 10-year bonds back above the 6% level, amid concerns that the country will be unable to meet deficit reduction targets.
Markets were also eyeing an auction of two and 10-year Spanish governments bonds later in the week, which was being seen as a key test of market appetite for the country’s debt.
Meanwhile, investors were also wary after official data showed that the Chinese economy grew at the slowest pace in almost three years in the first quarter, fuelling concerns over a slowdown in global growth.
In Switzerland, official data showed earlier that the producer price index rose less-than-expected last month, climbing 0.3%, disappointing expectations for a 0.5% gain after increasing by 0.8% in February.
Elsewhere, the Swissie was fractionally lower against the euro with EUR/CHF inching up 0.01%, to hit 1.2027.
Later in the day, the U.S. was to release government data on retail sales and a report on manufacturing activity in New York, as well as official data on net long-term securities transactions and business inventories.