Forex Pros – The U.S. dollar was trading close to a record low against the Swiss franc on Tuesday, as uncertainty ahead of a critical Greek parliamentary vote on austerity measures boosted demand for traditional safe haven assets.
USD/CHF hit 0.8333 during European morning trade, the daily low; the pair subsequently consolidated at 0.8343, slipping 0.10%.
The pair was likely to find short-term support at 0.8310, last Friday’s low and the pair’s all-time low and resistance at 0.8431, the high of June 22.
Greece’s parliament was due to vote Wednesday on the EUR28.4 billion, five-year austerity package.
If the package is not approved, the European Union and International Monetary Fund have said they will not disburse the fifth tranche of Greece’s EUR110 billion bailout program, which could result in the euro zone’s first sovereign debt default.
The greenback’s losses were limited after Reuters reported earlier that European Union officials were working on a contingency plan for Greece in case its parliament rejected the austerity program.
The Swissie was also close to a record high against the euro, with EUR/CHF slipping 0.15% to hit 1.1915.
Earlier Tuesday, a report showed that Switzerland’s consumption indicator rose significantly in May, driven by an increase in new car registrations.
UBS bank said its consumption indicator rose 0.34 points to 1.91 last month, its highest level since August last year, following a 0.1 point decline in April.
Forexpros
