Forexpros – The U.S. dollar dipped against the Swiss franc on Thursday, after upbeat German business confidence data lifted sentiment but the greenback remained supported amid ongoing fears over the euro zone’s debt woes.
USD/CHF hit 0.9168 during European morning trade, the daily low; the pair subsequently consolidated at 0.9188, slipping 0.13%.
The pair was likely to find support at 0.9084, the low of November 18 and resistance at 0.9235, the high of November 17 and an almost six-week high.
Market sentiment received a boost after German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 106.6 in November from 106.4 the previous month.
Analysts had expected the index to fall to 105.5.
The data indicated that the euro zone’s largest economy is coping with the region’s debt crisis better than experts had feared.
Market sentiment was hit on Wednesday after the least successful German bond sale since the launch of the single currency sparked concerns over contagion to core euro zone economies.
Later Thursday, German, French and Italian leaders were to meet to discuss ways to deal with the euro zone’s worsening financial troubles.
Earlier in the day, Switzerland’s President Micheline Calmy-Rey said the overvaluation of the franc posed a serious threat to the country’s economy and carried the risk of deflation and added that the Swiss National Bank was committed to “a substantial and lasting weakening of the franc.”
The Swissie also dipped against the euro, with EUR/CHF inching up 0.10% to hit 1.2288.
Also Thursday, U.S. markets were to remain closed for the Thanksgiving holiday.
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