Forexpros – The U.S. dollar trimmed losses against the Swiss franc on Wednesday, after the European Central Bank reported stronger-than-expected demand for a refinancing operation, supporting safe haven demand.
USD/CHF hit 0.9263 during European morning trade, the pair’s lowest since December 12; the pair subsequently consolidated at 0.9299, shedding 0.20%.
The pair was likely to find support at 0.9175, the low of December 8 and resistance at 0.9380, the high of December 20.
In its first offering of three-year loans, the ECB allotted EUR489 billion to 523 euro zone banks, exceeding expectations for a total amount of EUR391 billion.
The loans are a way to ensure that European lenders have ample funding in order to avert a liquidity shortage in the region and increase bond purchases from indebted euro zone states.
The scale of the operation indicated that European lenders believe that funding shortages are likely to continue into 2012.
Elsewhere, the Swissie was fractionally lower against the euro with EUR/CHF inching up 0.07%, to trade at 1.2197.
Later in the day, the U.S. was to produce industry data on existing home sales.
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