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Forex - EUR/CHF falls to fresh record low, SNB eyed

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Forexpros - The euro fell to a fresh record low against the Swiss franc on Tuesday, extending sharp losses from the previous session as growing concerns over the global economic outlook supported demand for safe haven assets.

EUR/CHF hit 1.0472 during last European afternoon trade, an all-time low; the pair subsequently consolidated at 1.0536, tumbling 1.58%.

The pair was likely to find short-term support at 1.0472, the daily low and a record low and resistance at 1.0991, Monday's high.

The single currency has fallen to fresh record lows against the Swissie for eight consecutive sessions.

The Swiss National Bank declined to comment on reports that it added liquidity to the foreign exchange market though currency swaps, in an effort to stem the franc's sharp gains.

"We have no comment," an SNB spokesman said.

Last week, the SNB narrowed its three-month Libor rate to 0.25% from 0.75%, saying the currency was "massively overvalued", adding that it "won't tolerate" a "tightening of monetary conditions" and therefore was taking measures against the franc.

Meanwhile, official data showed that Swiss consumer sentiment fell more-than-expected to minus 17.0 in the three months to July, disappointing expectations for a decline to minus 7.0, as households turned more pessimistic about the country's economic prospects in the coming 12 months.

Elsewhere, the euro was also lower against the yen, with EUR/JPY shedding 0.11% to hit 110.14.

Earlier Tuesday, Japanese Finance Minister Yoshihiko Noda said that he was closely watching market movements "with a sense of urgency", signaling further intervention was possible.

Separately, Bank of Japan Governor Masaaki Shirakawa said that the central bank is always ready to take appropriate monetary policy action if needed, while carefully examining economic and price conditions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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