Forex Pros – The U.S. dollar was down against the Swiss franc for a second day on Wednesday, slumping to a fresh three-week low as risk aversion arising from escalating violence in North Africa and the Middle East drove investors towards the safe haven franc.
USD/CHF hit 0.9353 during European morning trade, the pair’s lowest since February 2; the pair subsequently consolidated at 0.9371, dropping 0.21%.
The pair was likely to find support at 0.9327, the low of February 2 and resistance at 0.9504, Tuesday’s high.
Speaking in a televised address on Tuesday, Libya’s long ruling leader Muammar Qaddafi stated that he had no intention of stepping down or leaving the country.
Qaddafi vowed to fight a growing rebellion until his “last drop of blood†and pledged to deploy the army and police to impose order.Â
Meanwhile, anti-government demonstrations continued in Bahrain on Wednesday, with Shi’ite Muslim protesters demanding the fall of the Sunni-run government in the biggest protest since unrest began last week.
Elsewhere, the Swissie was down against the euro, with EUR/CHF gaining 0.39% to hit 1.2866.
Earlier Wednesday, government data showed that Switzerland’s producer price index rose in line with expectations in January.
Later in the day, the U.S. was to publish industry data on existing home sales.
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