Forexpros – The U.S. dollar trimmed gains against the Swiss franc on Wednesday, as the European Central Bank supported euro zone bond markets by buying Italian and Spanish government debt.
USD/CHF pulled back from 0.9224, the pair’s highest since October 10 to hit 0.9166 during European morning trade, still up 0.18%.
The pair was likely to find support at 0.9017, the low of November 10 and resistance at 0.9272, the high of October 10.
The Swissie found support as Italian government borrowing costs eased back below the 7% threshold, a level widely viewed as unsustainable in the long term, while Spanish 10-year yields also eased off Tuesday’s three month high.
Later Wednesday, incoming Italian Prime Minister Mario Monti was due to meet with President Giorgio Napolitano to officially accept the post and present his new government.
Meanwhile, official data showed that the rate of consumer inflation in the euro zone remained unchanged at 3% in October, in line with expectations.
Elsewhere, the Swissie was up against the euro with EUR/CHF slipping 0.17%, to hit 1.2366
Later in the day, the U.S. was to release official data on consumer price inflation and industrial production.
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