Forexpros – The U.S. dollar trimmed losses against the Swiss franc on Monday, as relief that Spain has secured a bailout for its banks was offset by sustained concerns over the ongoing sovereign debt crisis in the euro zone.
USD/CHF pulled away from 0.9480, the pair’s lowest since May 23, to hit 0.9556 during European morning trade, still down 0.41% on the day.
The pair was likely to find support at 0.9476, the session low and an almost three-week low and resistance at 0.9652, the high of June 6.
Investor sentiment was boosted after Spain’s Finance Minister Luis de Guindos said Saturday that the European Union agreed to grant Madrid a loan of up to EUR100 billion, which the government will use to recapitalize the country’s ailing banking sector.
But investors remained jittery as details of the Spanish bailout agreement remained unclear, with the exact amount Spain is to receive still be decided, after the results of independent banking audits are published later this month.
Meanwhile, uncertainty over the outcome of a Greek general election on June 17, which could determine the course of the country’s future in the euro zone, also weighed.
The Swissie was little changed against the euro, with EUR/CHF inching up 0.01% to hit 1.2011.
Elsewhere Monday, markets shrugged off official data showing that Chinese inflation, industrial output and retail sales disappointed expectations in May, after unexpectedly strong import data eased concerns over a ‘hard landing’ in the world’s second largest economy.
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