Forex Pros – The U.S. dollar touched a fresh record low against the Swiss franc on Tuesday, as demand for safe haven currencies was boosted by fears over retaliation from Islamic militants following Sunday’s killing of Osama bin Laden.
USD/CHF hit 0.8620 during European morning trade, the pair’s all-time low; the pair subsequently consolidated at 0.8639, slipping 0.02%.
The pair was likely to find short-term support at 0.8620, the days low and resistance at 0.8747, last Thursday’s high.
Earlier in the day, the U.S. and Australia increased security at their embassies, while Interpol told its 188 member countries to be on “full alert” after U.S. President Barack Obama Sunday announced the killing of the Al Qaeda leader in Pakistan.
The Swiss franc has risen to a series of record highs against the dollar in recent months, fuelled by expectations for policy tightening by the Swiss National Bank as low unemployment, rising house prices and robust consumer spending have kept the recovery on track.
The Swissie was also higher against the euro, with EUR/CHF shedding 0.29% to hit 1.2794.
Later Tuesday, the U.S. was to release government data on factory orders.
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