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Forex - USD/CHF rises to 2-week high on E.Z. worries

By: Investing.com
Posted: 2/14/2013 7:47:00 AM
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Investing.com - The U.S. dollar rose to a two-week high against the Swiss franc on Thursday, as fresh concerns over the worsening of the financial crisis in the euro zone weighed on market sentiment.

USD/CHF hit 0.9246 during European morning trade, the pair's highest since January 29; the pair subsequently consolidated at 0.9231, climbing 0.67%.

The pair was likely to find support at 0.9169, the day's low and resistance at 0.9268, the high of January 29.

Sentiment was hit after Eurostat said euro zone gross domestic product contracted by 0.6% in the three months to December, compared to expectations for a 0.4% decline, after a 0.1% contraction in the third quarter.

Euro zone GDP fell 0.9% compared to a year earlier, worse than expectations for a 0.7% contraction, after shrinking at an annualized rate of 0.6% in the previous quarter.

Earlier in the session official data showed larger-than-forecast contractions in German, French and Italian fourth quarter economic growth.

Germany's economy, the euro zone's largest, contracted by 0.6% in the in the fourth quarter, worse than expectations for a 0.5% fall.

France's economy also contracted more than forecast, with GDP falling by 0.3%, while Italy's economy contracted by 0.9%.

Elsewhere, the Swissie was higher against the euro with EUR/CHF shedding 0.23%, to hit 1.2308.

Later in the day, the U.S. was to release the weekly government report on initial jobless claims.


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