Forexpros – The U.S. dollar was lower against the Swiss franc on Tuesday, as investors were cautious ahead of Italian bond auctions later in the week while concerns over the debt crisis in the euro zone continued to weigh.
USD/CHF hot 0.9336 during European morning trade, the pair’s lowest since December 22; the pair subsequently consolidated at 0.9343, declining 0.18%.
The pair was likely to find support at 0.9266, the low of December 20 and resistance at 0.9414, the high of December 16.
Trading volumes were low, resulting in subdued trade as many investors were already away on year-end leave, resulting in subdued trade.
Italy’s Treasury was to auction short term bonds on Wednesday and ten-year bills on Thursday.
Markets were jittery as the yield on Italy’s ten-year bonds surged to 7.07% earlier, a level widely seen as unsustainable, adding to worries over the handling of the country’s financial woes.
In Switzerland, data showed that the UBS consumption indicator declined in November, falling for the first time in three months.
In a report, Swiss bank UBS said its consumption indicator edged down to 0.81 in November from 0.90 the previous month, whose figure was revised down from 0.91.
Elsewhere, the Swissie was moderately higher against the euro with EUR/CHF edging down 0.06%, to hit 1.2215.
Later in the day, the U.S. was to publish industry data on house price inflation, as well as a report on consumer confidence and manufacturing activity in Richmond.
Forexpros
