Investing.com - The U.S. dollar was almost unchanged against the Swiss franc on Tuesday, after Spain sold the full targeted amount of short term debt in a closely watched government bond auction but investors remained cautious after the country’s borrowing costs almost doubled.
USD/CHF hit 0.9132 during European morning trade, the session low; the pair subsequently consolidated at 0.9142, inching down 0.04%.
The pair was likely to find support at 0.9114, the low of March 6 and resistance at 0.9201, the high of March 7.
Spain’s Treasury sold EUR2.09 billion worth of 12-month government bonds at an average yield of 2.62%, up from 1.41% at a previous auction, and EUR1.09 billion of 18-month bills at an average yield of 2.93%, up from 1.71%.
Investors remained jittery as concerns mounted that the government will not be able to meet deficit reduction targets in the face of a looming recession.
The cost of insuring Spanish sovereign debt against default rose to a record on Monday, pushing the yield on the country’s 10-year bonds above 6% for the first time since early December.
Investors were also cautious as concerns over China’s economic outlook intensified after data released earlier showed that foreign direct investment into China in March declined 6.1% from a year earlier to USD11.76 billion.
Elsewhere, the Swissie was also steady against the euro with EUR/CHF edging 0.01% lower, to hit 1.2019.
Later in the day, the U.S. was to produce government data on building permits, housing starts and industrial production.
USD/CHF hit 0.9132 during European morning trade, the session low; the pair subsequently consolidated at 0.9142, inching down 0.04%.
The pair was likely to find support at 0.9114, the low of March 6 and resistance at 0.9201, the high of March 7.
Spain’s Treasury sold EUR2.09 billion worth of 12-month government bonds at an average yield of 2.62%, up from 1.41% at a previous auction, and EUR1.09 billion of 18-month bills at an average yield of 2.93%, up from 1.71%.
Investors remained jittery as concerns mounted that the government will not be able to meet deficit reduction targets in the face of a looming recession.
The cost of insuring Spanish sovereign debt against default rose to a record on Monday, pushing the yield on the country’s 10-year bonds above 6% for the first time since early December.
Investors were also cautious as concerns over China’s economic outlook intensified after data released earlier showed that foreign direct investment into China in March declined 6.1% from a year earlier to USD11.76 billion.
Elsewhere, the Swissie was also steady against the euro with EUR/CHF edging 0.01% lower, to hit 1.2019.
Later in the day, the U.S. was to produce government data on building permits, housing starts and industrial production.