Forexpros – The broadly weaker U.S. dollar was down against the Swiss franc on Tuesday, as demand for higher-yielding assets was boosted by hopes for a Greek debt restructuring deal and after European leaders agreed on a pact to tackle the region’s debt crisis.
USD/CHF hit 0.9124 during European morning trade, the session low; the pair subsequently consolidated at 0.9129, shedding 0.44%.
The pair was likely to find short-term support at 0.9113, Friday’s low and a two-month low and resistance at 0.9177, the session high.
Speaking at Monday’s European Union summit, Greek Prime Minister Lucas Papademos said negotiators had made “significant progress” in talks aimed at reaching a restructuring deal on government debt and aimed to have a definitive agreement in place by the end of this week.
Meanwhile, EU leaders agreed on a fiscal union pact and signed off on the details of a EUR500 billion permanent bailout fund for the euro zone that will come into force in July.
But investors remained cautious amid concerns over Portugal’s debt load, as the yield on the country’s 10-year government bonds rose above 17% earlier, underlining fears that the country may need a second international bailout.
The Swissie was almost unchanged against the euro, with EUR/CHF dipping 0.02% to hit 1.2048.
Later in the day, the U.S. was to release industry data on house price inflation, as well as a report on manufacturing activity in the Chicago region. The country is also to publish a report on consumer confidence.
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