Forex - EUR/CHF tumbles to record low amid global growth fears

Forex Pros – The euro tumbled to a record low against the Swiss franc on Thursday, after an unexpected increase in U.S. jobless claims added to concerns that the global economic recovery is losing momentum.

EUR/CHF hit 1.1902 during European afternoon trade, the pair’s all-time low; the pair subsequently consolidated at 1.1903, tumbling 1.20%.

The pair was likely to find short-term support at 1.1800 and resistance at 1.2147, Wednesday’s high.

The U.S. Labor Department said the number of people filing for initial jobless benefits last week rose to a seasonally adjusted 429,000 from 414,000 the previous week, confounding expectations for a decline to 410,000.

Earlier in the day, preliminary data showed that private sector activity in the euro zone grew at its slowest rate in more than a year-and-a-half in June.

Meanwhile, in China, the preliminary HSBC China purchasing managers’ index fell to an 11-month low of 50.1 in June. A reading above 50 indicates expansion.

Concerns over Greece’s sovereign debt crisis added to overall risk aversion after European Central Bank President Jean-Claude Trichet said late Wednesday that risk signals for financial stability in the euro zone were flashing “red” and that the debt crisis was threatening to infect European lenders.

The euro was also lower against the yen, with EUR/JPY falling 0.76% to hit 114.39.

Elsewhere Thursday, European leaders were continuing the first day of a two-day summit meeting in Brussels, where talks aimed at reaching a resolution on Greece’s debt crisis were set to dominate the agenda.




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