Forexpros – The U.S. dollar slipped to a daily low against the Swiss franc on Wednesday, as concerns over sovereign debt loads in the euro zone and the U.S. bolstered demand for the safe haven franc.
USD/CHF hit 0.8316 during European late morning trade, the daily low; the pair subsequently consolidated at 0.8220, shedding 0.23%.
The pair was likely to find support at 0.8080, Monday’s low and the pair’s all-time low and resistance at 0.8330, the high of July 13.
On Tuesday, U.S. President Barack Obama said a proposed USD3.7 trillion deficit-reduction plan was “a very significant step,” raising hopes that a deal on lifting the USD14.3 trillion U.S. debt ceiling would be reached before the August 2 deadline.
In the euro zone, European Union leaders were to hold an emergency summit meeting on Thursday, aimed at addressing the region’s sovereign debt woes.
Speaking ahead of the summit, German Chancellor Angela Merkel said Europe’s fiscal crisis can’t be solved in one go, damping expectations that policymakers will resolve the region’s debt woes at the meeting.
Meanwhile, the Swiss franc slipped against the broadly stronger euro, with EUR/CHF easing up 0.09% to hit 1.1674.
On Tuesday, in its final meeting before the summer break, the Swiss government agreed to keep a close eye on the currency situation in coming weeks, but not to take immediate action to curb the franc’s gains, despite the problems the currency’s strength is causing to exporters and tourism.
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