Forexpros – The U.S. dollar was higher against the Swiss franc on Monday, as renewed concerns over a sovereign default by Greece boosted demand for the dollar as a safe haven after the Swiss National Bank’s move to weaken the franc diminished its safe haven appeal.
USD/CHF hit 0.8860 during European morning trade, the pair’s highest since September 13; the pair subsequently consolidated at 0.8831, surging 0.86%.
The pair was likely to find support at 0.8685, Friday’s low and resistance at 0.8927, the high of September 12 and a four-month high.
A meeting of European Union finance ministers over the weekend failed to make any significant headway on dealing with the financial crisis in the region.
Ministers warned they may withhold Greece’s next tranche of bailout aid, due in October, if Athens fails to meet deficit reduction targets. After the meeting, Greek Prime Minister George Papandreou canceled a planned visit to the U.S. in order to hold crisis talks at home.
Elsewhere, the Swissie was slightly higher against the euro, with EUR/CHF slipping 0.13% to hit 1.2068, trading close the 1.20 targeted exchange rate imposed by the SNB on September 6.
Later in the day, officials from the EU and the International Monetary Fund were to hold talks with Greek Finance Minister Evangelos Venizelos to discuss extra steps Athens can take to qualify for its next tranche of aid.
Also Monday, U.S. President Barack Obama was to speak about the economy, in Washington.
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