Forexpros – The U.S. dollar tumbled more than 1% against the Swiss franc on Monday, as hopes for progress in resolving the debt crisis in the euro zone weighed on demand for the safe haven greenback.
USD/CHF hit 0.9212 during European morning trade, the daily low; the pair subsequently consolidated at 0.9184, shedding plummeting 1.25%.
The pair was likely to find support at 0.9084, the low of November 18 and resistance at 0.9329, the high of November 25.
Risk appetite improved amid hopes that European Union leaders would be able to reach an agreement on a fiscal pact to halt the spread of the region’s debt crisis ahead of an EU summit early next month.
The pact, if agreed, would make budget discipline legally binding and enforceable by European authorities and would give the European Central Bank more scope to undertake large scale bond purchases.
Concerns over the debt crisis remained after Moody’s Investors Service warned that the rapid escalation of the euro zone sovereign and banking crisis was threatening the credit ratings of all European government bonds.
Elsewhere, the Swissie was down against the euro with EUR/CHF shedding 0.13%, to trade at 1.2237.
Later in the day, the U.S. was to release official data on new home sales.
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