Forexpros – The U.S. dollar extended gains against the Swiss franc on Wednesday, climbing to a session high after a closely watched auction of German government debt met with lackluster investor demand.
USD/CHF hit 0.9376 during European morning trade, the daily high; the pair subsequently consolidated at 0.9371, gaining 0.55%.
The pair was likely to find support at 0.9302, Tuesday’s low and resistance at 0.9469, the high of December 29.
Germany sold EUR4.06 billion of 10-year bonds at an average yield of 1.93%, compared with 1.98% at November’s launch of the January 2022 bond, which was one of the worst German debt auctions since the inception of the single currency.
Elsewhere, Portugal sold EUR1 billion in three-month government bonds, at an average yield of 4.34% compared to a yield of 4.87% at a similar auction in December.
The auctions came after data showed that service sector activity in the euro zone contracted for the fourth consecutive month in December, albeit at a slower pace than initially estimated.
The dollar slid to a two-week low against the Swiss franc on Tuesday, after stronger-than-expected U.S. and euro zone economic data dampened safe haven demand.
The Swissie was also lower against the euro, with EUR/CHF rising 0.17% to hit 1.2186.
Later Wednesday, the U.S. was to release official data on factory orders.
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