FRX: Swissy extends gains vs. dollar, hitting 1-month high
Forex Pros – The Swiss franc extended gains versus the U.S. dollar on Tuesday, hitting a 1-month high after Belgium and Spain sold government debt and Ireland issued bonds in auctions, quelling fears over the euro zone debt crisis.
USD/CHF hit 1.134 during early U.S. trade, its lowest since May 18; the pair subsequently consolidated around 1.1346, dropping 0.66%.
The pair was likely to find resistance at 1.173, the high of June 1, and support at 1.1267, the low of May 18.
The Swissy fell versus the greenback earlier after Moody's Investor services said it was cutting Greece's government bond ratings, rekindling fears that the country's debt crisis would spread across the euro zone, Switzerland's biggest trading partner.
Meanwhile, the Swissy climbed against the yen on Tuesday, with CHF/JPY rising 0.32% to reach 80.43.
Also Tuesday, official data showed that while manufacturing activity in New York State rose at a slower rate than expected in June, foreign purchases of U.S. securities grew at a faster pace than forecast in April.
