Forexpros – The U.S. dollar was down against the Swiss franc on Tuesday, falling to a five-week low as hopes of a solution to the euro zone debt crisis by the end of crucial talks this week weighed on demand for safe haven dollar.
USD/CHF hit 0.8772 during European morning trade, the pair’s lowest since September 21; the pair subsequently consolidated at 0.8786, shedding 0.24%.
The pair was likely to find support at 0.8685, the low of September 16 and resistance at 0.8996, the high of October 17.
Market sentiment improved after European leaders appeared to be closer to a deal on bank recapitalization on Sunday, while France and Germany were approaching an agreement to bolster the firepower of the euro zone’s rescue fund.
However, divisions over restructuring Greek debt remained and a final agreement was expected at a follow-up summit on Wednesday.
Earlier Tuesday, a Swiss report showed that the UBS consumption indicator improved slightly in September, after falling sharply between June and August as the Swiss National Bank’s intervention to weaken the franc last month eased concerns over the economic outlook
The indicator ticked up to 0.84 in September, from a downwardly revised reading of 0.80 the previous month.
Elsewhere, the Swissie was higher against the euro with EUR/CHF sliding 0.18%, to hit 1.2246.
Later in the day, the U.S. was to publish industry data on house price inflation as well as a report on consumer confidence.
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