Investing.com - The U.S. dollar rose to a three-week high against the Swiss franc on Thursday, as fears that the sovereign debt crisis in the euro zone is flaring up again saw investors shun riskier assets and seek out the safety of the greenback.
USD/CHF hit 0.9207 during European morning trade, the pair’s highest since March 16; the pair subsequently consolidated at 0.9196, gaining 0.43%.
The pair was likely to find support at 0.9142, the session low and resistance at 0.9253, the high of March 16.
Market sentiment weakened amid growing concerns over Spain’s debt load as the country’s borrowing costs continued to rise following Wednesday’s poorly received bond auction. The yield on the country’s 10-year bond climbed to 5.71% earlier, the highest level since mid-December.
Meanwhile, concerns over the outlook for growth in the euro zone mounted following a recent string of weak economic data.
Earlier Thursday, official data showed that German industrial production dropped 1.3% in February, more than expectations for a 0.5% drop and renewing concerns over the outlook for the bloc’s largest economy.
Market moves were also exacerbated by thin trade volumes in quiet pre-Easter trade.
Elsewhere, the Swissie briefly rose above the 1.20 exchange rate cap against the euro earlier, before falling back.
EUR/CHF hit 1.1997, the pair’s lowest since September 6; the pair subsequently consolidated at 1.2014, down 0.18%.
Following the move, a spokesperson for the SNB reiterated that the bank was committed to defending the 1.20 minimum exchange rate level.
Also Thursday, official data showed that consumer price inflation in Switzerland rose more-than-expected in March, ticking up 0.6% after a 0.3% rise the previous month.
Analysts had expected consumer price inflation to rise 0.4% last month.
The data came after the SNB reported that foreign currency reserves rose to CHF237.5 billion in March from CHF227.2 billion the previous month.
USD/CHF hit 0.9207 during European morning trade, the pair’s highest since March 16; the pair subsequently consolidated at 0.9196, gaining 0.43%.
The pair was likely to find support at 0.9142, the session low and resistance at 0.9253, the high of March 16.
Market sentiment weakened amid growing concerns over Spain’s debt load as the country’s borrowing costs continued to rise following Wednesday’s poorly received bond auction. The yield on the country’s 10-year bond climbed to 5.71% earlier, the highest level since mid-December.
Meanwhile, concerns over the outlook for growth in the euro zone mounted following a recent string of weak economic data.
Earlier Thursday, official data showed that German industrial production dropped 1.3% in February, more than expectations for a 0.5% drop and renewing concerns over the outlook for the bloc’s largest economy.
Market moves were also exacerbated by thin trade volumes in quiet pre-Easter trade.
Elsewhere, the Swissie briefly rose above the 1.20 exchange rate cap against the euro earlier, before falling back.
EUR/CHF hit 1.1997, the pair’s lowest since September 6; the pair subsequently consolidated at 1.2014, down 0.18%.
Following the move, a spokesperson for the SNB reiterated that the bank was committed to defending the 1.20 minimum exchange rate level.
Also Thursday, official data showed that consumer price inflation in Switzerland rose more-than-expected in March, ticking up 0.6% after a 0.3% rise the previous month.
Analysts had expected consumer price inflation to rise 0.4% last month.
The data came after the SNB reported that foreign currency reserves rose to CHF237.5 billion in March from CHF227.2 billion the previous month.