Forex - USD/CHF little changed near multi-month lows

Investing.com - The U.S. dollar was little changed close to seven-and-a-half month lows against the Swiss franc on Thursday, as market sentiment was hit by uncertainty over progress in negotiations to avoid the U.S. fiscal cliff.

USD/CHF hit 0.9125 during European morning trade, the session low; the pair subsequently consolidated at 0.9126, dipping 0.07%.

The pair was likely to find support at 0.9086, Wednesday’s low and an eight-and-a-half month low and resistance at 0.9185, Tuesday’s high.

Market sentiment was hit by growing doubts over whether a deal to avoid the U.S. fiscal cliff will be reached ahead of the January 1 deadline,  fuelling concern that automatic tax hikes and spending cuts will be triggered.

A spokesman for President Barack Obama said Wednesday that the White House would veto a tax and spending proposal presented by House Speaker John Boehner.

Trade was expected to remain subdued on Thursday, as markets wound down ahead of the Christmas holidays.

The Swissy was almost unchanged against the euro, with EUR/CHF dipping 0.04% to 1.2076.

The U.S. was to release the weekly report on initial jobless claims, as well as revised data on third quarter growth and data on manufacturing activity in Philadelphia later in the trading day. In addition, the U.S. was to publish industry data on existing home sales.