Forexpros – The U.S. dollar rose to a two-day high against the Swiss franc on Wednesday, as investors remained cautious amid political uncertainty in Greece and the risk of seeing the country leave the euro zone.
USD/CHF hit 0.9263 during European late morning trade, the pair’s highest since May 7; the pair subsequently consolidated at 0.9259, rising 0.25%.
The pair was likely to find support at 0.9194, Tuesday’s low and resistance at 0.9299, the high of February 16.
Concerns over Greece’s future in the single currency bloc mounted on Tuesday after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, declared that Greece’s financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but if talks fail a second round of elections will have to be held.
Investors were also fearful that French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone’s debt crisis could spark tensions with Germany.
The Swissie was steady against the euro with EUR/CHF inching down 0.01%, to hit 1.2011.
Also Wednesday, official data showed that German exports and imports both hit record highs in March, fuelling hopes that the euro zone’s largest economy is weathering the effects of the debt crisis.
The Federal Statistics Office said exports increased by 0.9% to EUR91.8 billion, while imports rose 1.2% to EUR78.1 billion.
Later in the day, the U.S. was to produce government data on crude oil stockpiles. A 10-year U.S. government bond auction was also scheduled.
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