🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Forex - USD/CHF weekly outlook: January 20 - 24

Published 01/19/2014, 06:34 AM
Dollar gains ground against Swiss franc
USD/CHF
-
EUR/CHF
-

Investing.com - The U.S. dollar rose to one-week highs against the Swiss franc on Friday as a batch of mixed U.S. data indicated that the economic recovery is likely to continue to gain momentum going into this year.

USD/CHF rose as high as 0.9120, the highest since January 9 and settled at 0.9100, 0.60% higher for the day. For the week, the pair gained 1.20%.

The pair was likely to find support at 0.9031, Thursday’s low and resistance at 0.9126, the high of January 8.

Data released on Friday showed that U.S. industrial production rose 0.3% in December, in line with expectations, rising for the fifth successive month.

Another report showed that U.S. housing starts fell 9.8% last month, more than the 8.3% decline forecast by analysts. U.S. building permits rose less-than-expected in December, but remained close to November’s five year highs.

Separately, data showed that the University of Michigan's consumer sentiment index ticked down to 80.4 in January from 82.5 in December. Analysts had expected the index to rise to 83.5.

Earlier in the week, data showed that U.S. retail sales posted a larger than expected gain in December.

The data indicated that while the recovery in the U.S. remains uneven, the economic outlook is continuing to improve. The dollar has strengthened broadly since the Fed announced its decision in December to scale back its asset purchase program, cutting it by USD10 million, to USD75 billion-per-month.

Swiss National Bank Chairman Thomas Jordan said Thursday that the minimum exchange rate floor of 1.20 francs to the euro is likely to remain the focus of monetary policy for some time to come, as the value of the franc remains high.

The euro was little changed against the Swiss franc on Friday. EUR/CHF touched session highs of 1.2335, and was last up 0.02% to 1.2322.

In the week ahead, U.S. data on jobless claims and home sales will be closely watched.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday and Friday as there are no relevant events on these days.

Monday, January 20

Markets in the U.S. are to remain closed for the Martin Luther King Day holiday.

Wednesday, January 22

The ZEW Institute is to publish a report on economic expectations in Switzerland, a leading indicator of economic health.

Thursday, January 23

The U.S. is release the weekly report on initial jobless claims and a private sector report on existing home sales.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.