Forex Pros – The euro tumbled to a fresh record low against the safe haven Swiss franc on Wednesday, as mounting concerns over Greece’s sovereign debt crisis weighed heavily on market sentiment.
EUR/CHF hit 1.2306 during European morning trade, the pair’s lowest since the launch of the single currency in 1999; the pair subsequently consolidated at 1.2305, tumbling 0.84%.
The pair was likely to find short-term support at 1.2250 and resistance at 1.2411, the day’s high.
The euro was weighed by speculation that Greece may call a snap election after the government failed to reach consensus with the opposition on new austerity measures.
Some European Union officials have supported a so-called “reprofiling”of Greece’s debt, whereby its payback period could be lengthened and interest costs may be reduced.
But Christian Noyer, a European Central Bank governing council member, ruled out a restructuring of Greece’s debt on Tuesday, calling it a horror story that would leave the nation shut out of financing for years.
The euro was also lower against the yen, with EUR/JPY shedding 0.29% to hit 115.20.
On Monday, Swiss National Bank Vice Chairman Thomas Jordan said he was “very worried” about the rise in the Swiss franc after the currency surged to a record high against the euro, but added that interest rates can remain low for a relatively long period if inflation risks are benign.
ForexPros.com
