Forex Pros – The U.S. dollar slipped lower against the Swiss franc on Monday, after a massive earthquake, a tsunami and a nuclear emergency in Japan boosted demand for safe haven assets.
USD/CHF hit 0.9258 during European morning trade, the daily low; the pair subsequently consolidated at 0.9277, sliding 0.22%.
The pair was likely to find support at 0.9199, the low of March 2 and the pair’s all-time low and resistance at 0.9358, Friday’s high.
The Bank of Japan announced earlier Monday that it was pumping a record JPY15 trillion into the financial system and doubling the size of its asset-purchase program to JPY10 trillion.
Also Monday, Japan’s Ministry of Economy, Trade & Industry said a hydrogen explosion had occurred at reactor three in the nuclear power plant in Fukushima, north of Tokyo, two days after an explosion hit reactor one.
Officials said the reactor core was still intact and that radiation levels were below legal limits.
Japan’s Prime Minister Naoto Kan said the situation at the nuclear plant was alarming, and the earthquake had thrown Japan into “the most severe crisis since World War II”.
Meanwhile, the Swissie was lower against the euro, with EUR/CHF rising 0.28% to hit 1.2963.
The single currency remained supported after European Union leaders reached an agreement on a German-inspired competitiveness pact on Friday. The agreement was considered a necessary precursor for EU leaders to reach an agreement to overhaul the 17-nation bloc’s bailout fund, the European Financial Stability Facility.
ForexPros.com
