Forexpros – The U.S. dollar was little changed against the Swiss franc in cautious trade on Monday, as sustained concerns over the threat of a Greek exit from the euro zone weighed on demand for higher yielding assets.
USD/CHF hit 0.9422 during European morning trade, the session high; the pair subsequently consolidated at 0.9404, inching up 0.07%.
The pair was likely to find short-term support at 0.9373, the session low and a four-day low and resistance at 0.9439, the high of May 15.
Market sentiment firmed up after a weekend summit of the G8 nations saw leaders affirm that they want Greece to remain in the euro zone, but leaders failed to reach an agreement on how to calm market turmoil stemming from the crisis in the region.
Concerns over political turmoil in Greece also eased after opinion polls indicated that pro-bailout party, New Democracy was leading the polls ahead of fresh elections, due to be held on June 17.
Uncertainty over the outcome of the elections has sparked fears over Greece’s ability to honor its financial commitments and its possible exit from the euro zone.
Meanwhile, concerns over the health of Spain’s banking sector also weighed, pushing the yield on Spanish 10-year bonds to 6.29% earlier.
The Swissie was flat against the euro, with EUR/CHF trading at 1.2011%.
Markets were looking ahead to a first meeting between German Finance Minister Wolfgang Schaeuble and his newly appointed French counterpart, Pierre Moscovici, later in the day, as European Union leaders prepared for Wednesday’s summit meeting.
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