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Forex - USD/CHF close to record low as debt plan vote looms

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Forexpros - The U.S. dollar was lower against the Swiss franc on Thursday, trading close to the pair's record low ahead of a key U.S. vote on a plan to raise the country's debt ceiling ahead of the August 2 deadline.

USD/CHF hit 0.8006 during European morning trade, the daily low; the pair subsequently consolidated at 0.8012, dipping 0.04%.

The pair was likely to find support at 0.7995, Wednesday's low and the pair's all-time low and short-term resistance at 0.8068, Tuesday's high.

Later in the day, the House of Representatives was to vote on a debt-limit increase plan, proposed by House Speaker John Boehner. However, President Barack Obama has threatened to veto the bill and a majority of the Democratic-controlled Senate has vowed to vote against it.

Meanwhile, Treasury Department officials have warned that the U.S. could begin defaulting on its obligations after Tuesday if Congress doesn't raise the USD14.3 trillion debt ceiling.

Meanwhile, renewed concerns over the sovereign debt crisis in the euro zone boosted demand for the safe haven franc, after Standard & Poor's cut Greece's credit rating to CC, two notches above default, saying the country will partially default on its debt once the second bailout package was implemented.

The Swissie was also higher against the euro, with EUR/CHF slipping 0.09% to hit 1.1504.

Also Thursday, the U.S. was to release government data on unemployment claims and pending home sales.

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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.


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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