Forex - USD/CHF edges lower after ECB Draghi’s comments

Forexpros - The U.S. dollar edged lower against the Swiss franc on Thursday, as investors remained concerned over the debt crisis in the euro zone following comments by European Central Bank President Mario Draghi.

USD/CHF hit 0.9106 during European morning trade, the daily low; the pair subsequently consolidated at 0.9010, shedding 0.37%.

The pair was likely to find support at 0.9017, the low of November 10 and resistance at 0.9243, the high of November 29.

Market sentiment was hit after Draghi said downside risks to the economic outlook have increased, adding that the bank's temporary measures are only limited.

Investors were also jittery ahead of French and Spanish bond sales scheduled later in the day. Spain was to sell EUR3.75 billion of notes, while France was expected to auction as much as EUR4.5 billion of debt.

Also Thursday, official data showed that Chinese manufacturing activity contracted in November for the first time in nearly three years, adding to concerns over a global economic slowdown.

Meanwhile, official data showed that Switzerland’s gross domestic product expanded in line with expectations in the third quarter, growing by 0.2%, bringing the annualized rate of growth to 1.3%.

A separate report showed that manufacturing activity in Switzerland fell more-than-expected in November, contracting for the third consecutive month.

The Swissie was steady against the euro with EUR/CHF inching down 0.07%, to trade at 1.2268.

Later in the day, the U.S. was to release its weekly report on initial jobless claims, while the Institute of Supply Management was to release data on manufacturing activity.