Forex: USD/CHF closes above 0.96 after recording new 2012 highs

[mikeyjerou]

FXstreet.com (San Francisco) - USD/CHF pushed above the 0.9600 mark Tuesday to reach a fresh multi-month high of 0.9636, a level not seen since 16 Feb 2011.

 

Most of Today’s major news has focused on rumors of a Chinese stimulus package, the Spanish banking sector, an earthquake in Italy and ongoing European uncertainty. In this environment the USD is broadly bid, as market sentiment is driven lower, helped by Egan Jones’ rating downgrade of Spain.

 

USD/CHF trades at 0.9612 ahead of the closing bell in New York, poised to record a 0.4% gain on the day. On the Swiss fundamental front, UBS's Consumption index for Apr improved to 1.41 from 1.20, but a disorganized breakup of the eurozone remains the single greatest threat to the Swiss economy. Resistance lies at 0.9773 (6 Feb high) while, immediate support is noted at 0.9575.