Forexpros – The U.S. dollar was lower against the Swiss franc on Monday, after German and French leaders announced a plan to deal with the region’s debt crisis, weighing on demand for the safe haven greenback.
USD/CHF hit 0.9078 during early European afternoon trade, the pair’s lowest since October 3; the pair subsequently consolidated at 0.9096, tumbling 1.88%.
The pair was likely to find support at 0.8917, the low of September 29 and short-term resistance at 0.9314, the high of October 5.
Market sentiment strengthened, after German Chancellor Angela Merkel and French President Nicolas Sarkozy announced a joint plan to deal with the consequences of the financial crisis in the single currency bloc.
The two leaders said they would unveil a plan to recapitalize European banks, find a solution to Greece’s financial crisis and strengthen economic coordination in the euro zone by the next G20 summit in November.
Meanwhile, the Swissie was lower against the euro with EUR/CHF shedding 0.30%, to hit 1.2367.
Also Monday, official data showed that investor confidence in the euro zone fell less-than-expected in October but remained in negative territory.
Sentix said its index of investor confidence fell 3.1 points to minus 18.5 in October, down from September’s reading of minus 15.4.
Analysts had expected the index to fall by 3.8 points to minus 19.2 in October.
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