Forex - USD/CHF slips, hovers near 7-month low

Investing.com - The U.S. dollar slipped against the Swiss franc on Tuesday, trading close to a seven-month low as investors continued to eye U.S. budget negociations amid hopes the country will manage to avoid a fiscal crisis.

USD/CHF hit 0.9166 during European morning trade, the daily low; the pair subsequently consolidated at 0.9167, slipping 0.10%.

The pair was likely to find support at 1.9159, the low of December 16 and a seven-month low and resistance at 0.9248, the high of December 14.

Sentiment found some support amid hopes U.S. lawmakers will reach an agreement in time to avoid automatic tax hikes and spending cuts due to take effect on January 1 which investors’ fears could derail the U.S. recovery and threaten global growth.

On Monday President Barack Obama made a counter-offer to Republicans that included a major change in position on tax hikes for the wealthy.

Meanwhile, markets remained jittery after European Central Bank President Mario Draghi said that the economic environment in the euro zone was challenging and was likely to remain so for some time to come.

The Swissie was steady against the euro with EUR/CHF dipping 0.01%, to hit 1.2077.

Later in the day, the U.S. was to produce government data on the current account.