Forexpros — The U.S. dollar trimmed gains against the Swiss franc on Monday, to trade within striking distance of the pair’s all-time low, amid concerns over the outlook for global growth and fears that credit rating agencies could still downgrade U.S. debt.
USD/CHF pulled back from 0.7954, the daily high, to hit 0.7865 during European morning trade, up just 0.11% on the day.
The pair was likely to find support at 0.7800 and resistance at 0.7952, the day’s high.
The dollar weakened amid lingering worries that the U.S. sovereign rating could still be downgraded, as well as concerns about the outlook for global economic growth after a report showed that Chinese factory activity slowed in July.
The dollar opened higher earlier, after U.S. President Barack Obama and Senate leaders announced Sunday night that they had reached agreement on a framework deal that will cut spending and raise the USD14.3 trillion federal debt ceiling, in order to avert a U.S. default.
The Senate was expected to pass the deal, which cuts about USD2.4 trillion from the deficit over the next decade, in a vote later Monday.
The Swissie was also lower against the euro, with EUR/CHF rising 0.38% to hit 1.1354.
Over the weekend, Swiss Economy Minister Johann Schneider-Ammann said the Swiss franc’s strength against the euro and the dollar was not a temporary phenomenon and heralded some “extremely tough years” for exporters and the tourism industry.
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