Forex Pros — The euro tumbled to a record low against the Swiss franc on Monday, as ongoing concerns over the regions debt crisis and weaker-than-expected economic data spurred demand for safe haven currencies.
EUR/CHF hit 1.2335 during European morning trade, a euro-lifetime low; the pair subsequently consolidated at 1.2348, shedding 0.62%.
The pair was likely to find short-term support at 1.2300 and resistance at 1.2423, the day’s high.
Fitch Ratings cut Greece’s debt ratings by three notches on Friday, while Standard & Poor’s cut its outlook for Italy to negative from stable on Saturday. Meanwhile, Spain’s ruling Socialist party lost to conservatives in elections on Sunday, raising concerns about how the country will address its debt problems.
Earlier Monday, preliminary data showed that manufacturing and service sector growth in Germany and the euro zone fell more-than-expected this month.
Germany’s manufacturing purchasing manager’s index was 54.9 for May, a six-month low compared to a final reading of 56.8 for the previous month.
The euro zone manufacturing PMI fell to a seven-month low of 54.8 in May, down from a final reading of 58.0 last month. The euro zone services PMI declined to 55.4 from a final reading of 56.7 last month.
The euro was also sharply lower against the yen, with EUR/JPY falling 1.44% to hit 113.97.
Last week, Switzerland’s economy minister urged the country’s business elite to “learn to live” with the strong franc, signaling that the government is unlikely to step up measures to assist companies affected by the currency’s appreciation.
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