Forexpros – The U.S. dollar was higher against the Swiss franc on Thursday, after Spanish borrowing costs rose to a euro-era high, underlining investor concerns over the ongoing debt crisis in the euro zone.
USD/CHF hit 0.9236 during European morning trade, the pair’s highest since October 10; the pair subsequently consolidated at 0.9211, gaining 0.19%.
The pair was likely to find support at 0.9138, Wednesday’s low and resistance at 0.9272, the high of October 10.
Spain sold EUR3.56 billion of 10-year bonds at 6.97% at an undersubscribed auction, while France sold EUR3.33 billion of 2016 notes at a yield of 2.82%.
Following the auction, the European Central Bank resumed purchases of Spanish government debt to ease pressure on borrowing costs.
In Switzerland, the ZEW Index of Economic Expectations dropped by 9.9 points to minus 64.3 this month amid concerns over a slowdown in global growth and the persistent strength of the Swiss franc.
The assessment of the current economic situation also continued its downward trend, falling 16.2 points to minus 4.8.
The Swissie was also lower against the euro, with EUR/CHF rising 0.24% to hit 1.2411.
Later in the day, the U.S. was to release official data on initial jobless claims, building permits and housing starts and a report on manufacturing activity in the Philadelphia region.
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