Forex Pros — The U.S. dollar was higher against the Swiss franc on Monday, climbing to a daily high as ongoing fears over sovereign debt issues in the euro zone spurred demand for the safe haven greenback.
USD/CHF hit 0.8758 during European morning trade, the daily high; the pair subsequently consolidated at 0.8830, gaining 0.61%.
The pair was likely to find support at 0.8746, Friday’s low and an eight-day low and resistance at 0.8937, the high of May 16.
On Sunday, Spain’s ruling Socialist party lost to conservatives in local and regional elections, raising concerns about how the country will address its debt problems.
The results came after Fitch Ratings cut Greece’s debt ratings by three notches on Friday, saying even a “soft” restructuring of the country’s debt by European Union policy makers would be considered a default, while Standard & Poor’s cut its outlook for Italy to negative from stable on Saturday.
Meanwhile, the Swissie surged to an-all time high against the euro, with EUR/CHF falling 0.50% to hit 1.2361.
On Friday, a senior official from the Swiss National Bank said the Swiss economy may still slow as the strong franc weighs on exports. The central bank has held off on tightening policy, leaving rates at record lows since March 2009, for fear of exacerbating upwards pressure on the Swiss franc.
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