Forex Pros — The U.S. dollar weakened against the safe haven Swiss franc on Tuesday, ahead of a critical confidence vote in Greek Prime Minister George Papandreou’s newly appointed cabinet later in the day.
USD/CHF hit 0.8420 during European morning trade, the daily low; the pair subsequently consolidated at 0.8436, slipping 0.30%.
The pair was likely to find support at 0.8346, the low of June 14 and resistance at 0.8515, Monday’s high.
The confidence vote needed to pass in order for the Greek government to secure support for a fresh round of harsh spending cuts and economic reforms ahead of a vote next week.
The unpopular austerity measures will qualify Greece for a second tranche of emergency loans from the European Union and International Monetary Fund and avert a sovereign debt default.
The Swissie was also slightly higher against the euro, with EUR/CHF sliding 0.13% to hit 1.2089.
Later Tuesday, Swiss National Bank Chairman Philipp Hildebrand was to speak, while the U.S. was to publish industry data on existing home sales.
ForexPros.com
