Forexpros – The U.S. dollar was higher against the Swiss franc on Monday, easing off a nearly three-month low as market sentiment weakened amid renewed concerns over the debt crisis in the euro zone.
USD/CHF hit 0.8994 during European morning trade, the daily high; the pair subsequently consolidated at 0.8993, rising 0.37%.
The pair was likely to find support at 0.8902, the low of October 14 and resistance at 0.9047, the high of October 18.
The Group of 20 nations failed over the weekend to reach an agreement on enlarging the size of the International Monetary Fund’s lending capacity and told European leaders that any outside assistance will be conditional upon a stronger euro zone debt firewall.
Germany has remained opposed to enlarging the size of the European Stability Mechanism, the permanent euro zone bailout fund that is to become active this year.
Market sentiment was also hit by the recent rally in oil prices, fanning concerns that higher prices could create a drag on the global economic recovery.
But the greenback’s gains were limited as markets eyed the European Central Bank’s second liquidity boosting operation, set to take place on Wednesday, after the bank carried out a similar successful operation in December.
Elsewhere, the Swissie was steady against the euro with EUR/CHF inching up 0.01%, to hit 1.2051.
Later in the day, the U.S. was to publish industry data on pending home sales.
Forexpros
