Forexpros – The U.S. dollar edged higher against the Swiss franc on Tuesday, as lingering concerns over a fresh intervention to weaken the franc weighed on the traditional safe haven currency.
USD/CHF hit 0.9068 during European morning trade, the pair’s highest since October 20; the pair subsequently consolidated at 0.9015, gaining 0.11%.
The pair was likely to find support at 0.8867, Monday’s low and resistance at 0.9110, the high of October 12.
Earlier in the day, official data showed that Swiss consumer confidence fell more-than-expected in October, dropping to the lowest level since July 2009, amid concerns over the economic impact of the persistently strong Swiss franc.
Late Monday, Swiss National Bank Vice President Thomas Jordan said policy makers are “permanently monitoring” developments and were ready to take further measures to weaken the franc if necessary.
Meanwhile, Italian Prime Minister Silvio Berlusconi’s government was to face a crunch vote on budget reforms later in the day. The vote would test the prime ministers majority in parliament and determine if he has enough support to stay in power and implement austerity measures.
On Monday, Berlusconi denied speculation that he was planning to resign after Italy’s borrowing costs surged to euro-era highs.
The Swissie was also lower against the euro, with EUR/CHF inching up 0.07% to hit 1.2418.
Later in the day, finance ministers from the European Union member states were to meet in Brussels to discuss the region’s ongoing financial crisis.
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