Forexpros — The U.S. dollar was higher against the Swiss franc on Tuesday, rebounding from a six-day low as risk aversion mounted ahead of a vote in Slovakia on the enhancement of the euro zone’s bailout fund.
USD/CHF hit 0.9101 during European morning trade, the daily high; the pair subsequently consolidated at 0.9105, rising 0.76%.
The pair was likely to find support at 0.8917, the low of September 29 and resistance at 0.9261, the high of October 4.
Investors remained cautious as Slovak lawmakers were to vote later in the day on a bill to expand the powers of the region’s EUR440 billion bailout fund, the European Financial Stability Facility.
Slovakia was the last euro zone state to vote on the potential EFSF enhancement.
Risk appetite was also hit after outgoing European Central Bank president Jean-Claude Trichet said earlier the region’s debt crisis had reached “a systemic dimension” and that risks to the economy were increasing rapidly.
Meanwhile, the Swissie was lower against the euro with EUR/CHF rising 0.52%, to trade at 1.2395.
Also Tuesday, officials from the European Union, International Monetary Fund and European Central Bank were to release a statement after negotiations with Greece on the country’s next tranche of financial aid concluded.
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