Investing.com - The U.S. dollar fell to a three-month low against the Swiss franc on Thursday, as market sentiment improved after a better-than-expected German Ifo report eased investor concerns over the outlook for Europe’s economy.
USD/CHF hit 0.9036 during European morning trade, the pair’s lowest since November 14; the pair subsequently consolidated at 0.9056, shedding 0.46%.
The pair was likely to find support at 0.8959, the low of November 14 and resistance at 0.9113, the session high.
Market sentiment was boosted after German research institute Ifo said its Business Climate Index rose to109.6 in February from a reading of 108.3 the previous month, surpassing expectations for an increase to 108.8.
The data fuelled hopes that the euro zone’s largest economy was weathering the impact of the debt crisis in the region and may avoid slipping into a recession.
But the greenback remained supported after the European Commission said a revised forecast for economic growth showed that the euro zone’s economy would contract by 0.3% in 2012, in line with expectations.
Meanwhile, uncertainty over Greece’s ability to implement austerity measures needed to qualify for a EUR130 billion bailout package and avoid defaulting on its debt continued to weigh on risk appetite.
The Swissie was almost unchanged against the euro, with EUR/CHF dipping 0.02% to hit 1.2056.
Later in the day, the U.S. was to produce government data on initial jobless claims.
USD/CHF hit 0.9036 during European morning trade, the pair’s lowest since November 14; the pair subsequently consolidated at 0.9056, shedding 0.46%.
The pair was likely to find support at 0.8959, the low of November 14 and resistance at 0.9113, the session high.
Market sentiment was boosted after German research institute Ifo said its Business Climate Index rose to109.6 in February from a reading of 108.3 the previous month, surpassing expectations for an increase to 108.8.
The data fuelled hopes that the euro zone’s largest economy was weathering the impact of the debt crisis in the region and may avoid slipping into a recession.
But the greenback remained supported after the European Commission said a revised forecast for economic growth showed that the euro zone’s economy would contract by 0.3% in 2012, in line with expectations.
Meanwhile, uncertainty over Greece’s ability to implement austerity measures needed to qualify for a EUR130 billion bailout package and avoid defaulting on its debt continued to weigh on risk appetite.
The Swissie was almost unchanged against the euro, with EUR/CHF dipping 0.02% to hit 1.2056.
Later in the day, the U.S. was to produce government data on initial jobless claims.