Forexpros – The U.S. dollar was up against the Swiss franc on Monday, as demand for the safe haven greenback found support amid sustained worries over the debt crisis in the euro zone after an Italian bond auction.
USD/CHF hit 77.25 during European morning trade, the daily high; the pair subsequently consolidated at 0.9024, rising 0.26%.
The pair was likely to find support at 0.8867 the low of November 7 and resistance at 0.9151, the high of November 10.
Italy sold all EUR3 billion of five-year government bonds it offered at an auction earlier Monday, at an average yield of 6.29%, a record high. The auction was seen as a key test of investor confidence in Italian debt.
It was the first auction of Italian debt since former European Commissioner Mario Monti was appointed to head a new government charged with implementing urgent reforms.
Over the weekend, Monti said he would name his Cabinet “with urgency.” Monti must present the names of his Cabinet ministers to Italy’s president before he can be sworn in.
In Switzerland, government data showed that producer price inflation declined less-than-expected in October, ticking down 0.2% after falling by 0.1% the previous month.
Analysts had expected a decline of 0.3% in October.
Meanwhile, the Swissie was up against the euro with EUR/CHF inching down 0.02%, to trade at 1.2371.
Also Monday, Greece’s finance minister said his priority was to ensure the country receives its sixth tranche of bailout funds after Prime Minister Lucas Papademos was sworn in.
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