Forexpros – The U.S. dollar fell against the Swiss franc on Thursday, hovering close to a five-week low as the announcement of fresh measures to tackle Greece’s financial troubles and prevent debt contagion in the euro zone dampened demand for the greenback.
USD/CHF hit 0.8732 during early European afternoon trade, the daily low; the pair subsequently consolidated at 0.8732, shedding 0.86%.
The pair was likely to find support at 0.8569, the low of September 8 and resistance at 0.8952, the high of October 21.
European leaders reached an agreement with banks to take a ‘voluntary’ 50% loss on the face value of their Greek debt. The writedown will reduce Greece’s debt burden from 160% of GDP to a more sustainable 120% by 2020.
The leaders also agreed to scale up the euro zone’s bailout fund, the European Financial Stability Facility, to EUR1 trillion and to recapitalize European banks by EUR106 billion, though they did not say how the money would be provided.
The final details on how to enlarge the EFSF were not expected to be agreed until November.
Meanwhile, the Swissie was steady against the euro with EUR/CHF inching up 0.008%, to hit 1.2253.
Later in the day, the U.S. was to publish preliminary data on third quarter GDP, as well as the GDP price index, the broadest measure of inflation. The country was also to publish its weekly data on initial jobless claims.
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