NEW YORK (Forex News Now) – The euro rose against the Swissy on Wednesday, recovering after seven consecutive days of losses triggered by the ongoing European debt crisis and Korean peninsula tensions.
In early European currency market trading, EUR/CHF was trading at 1.3134 at around 8:30 A.M., GMT, rising from an open of 1.3028.
The euro had taken a pounding in the last week as speculation continued to mount that Ireland’s debt crisis would spread to other euro zone countries, including Portugal, Spain and even Italy.
Investors had also rallied to the safe currencies such as the Swissy after tensions mounted on the Korean peninsula as the North launched an artillery barrage against the South last week.
According to EUR/CHF analysis, the euro was likely to touch support on Wednesday around the previous day’s low of 1.2970 and to encounter immediate resistance around the mark of 1.3150.
The euro’s gain also came as a new report showed that German retail sales grew much higher than expected in the month of October. According to a report from the country’s national statistics office, sales grew by 2.3%, far more than the forecast 1.3% and reversing the previous month’s drop of 1.8%.
Elsewhere in currency market trading Wednesday, the pound rose against the swissy: GBP/CHF was trading at 1.5630 at around 8:40 A.M., GMT, up from an open of 1.5617.