Investing.com - The dollar was little changed against the Swiss franc on Friday as the greenback took a pause following a selloff earlier in the week, which saw it drop from six-week highs against the Swissy.
USD/CHF hit session lows of 0.9438, before settling at 0.9459, down 0.09% for the day, and 1.89% lower for the week.
The pair is likely to find support at 0.9402, Thursday’s low and the lowest since June 26 and resistance at 0.9592, Thursday’s high.
The dollar fell sharply on Wednesday after comments by Federal Reserve Chairman Ben Bernanke saw traders reassess expectations on the timing of a possible reduction to the bank’s easing program.
Bernanke said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.
Bernanke said the bank will not raise interest rates until the U.S. unemployment rate hits 6.5%.
The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.
Around half of Fed policymakers believe the bank should start to scale back bond purchases by the end of the year, while many others believe the labor market still remains too weak.
Data on Friday showed that U.S. consumer sentiment ticked lower in July, with the University of Michigan’s consumer sentiment index slipping to 83.9 from 84.1 in June, compared to expectations for a reading of 85.0.
Meanwhile, Philadelphia Fed President Charles Plosser said Friday the U.S. central bank should wind down its monetary stimulus program by the end of this year. Elsewhere, St. Louis Fed President James Bullard said the bank should not start tapering asset purchases if inflation remains weak.
In the week ahead, investors will be looking ahead to U.S. data on retail sales, consumer inflation and housing sector activity for indications that the U.S. recovery is on track. Meanwhile, Switzerland is to produce data on inflation and economic expectations.
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 Friday as there are no relevant events on this day.
Monday, July 15
Switzerland is to publish government data on producer price inflation.
Later Monday, the U.S. is to produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The U.S. is also to publish the Empire state manufacturing index and a report on business inventories.
Tuesday, July 16
The U.S. is to release official data on consumer price inflation, industrial production and the capacity utilization rate.
Wednesday, July 17
The ZEW Institute is to publish a report on economic expectations in Switzerland, a leading indicator of economic health.
The U.S. is to release official data on building permits, a leading indicator of future construction sector activity, as well as data on housing starts. The Federal Reserve is to release its Beige book.
Thursday, July 18
The U.S. is to release the weekly government report on initial jobless claims and the Philly Fed manufacturing index.
USD/CHF hit session lows of 0.9438, before settling at 0.9459, down 0.09% for the day, and 1.89% lower for the week.
The pair is likely to find support at 0.9402, Thursday’s low and the lowest since June 26 and resistance at 0.9592, Thursday’s high.
The dollar fell sharply on Wednesday after comments by Federal Reserve Chairman Ben Bernanke saw traders reassess expectations on the timing of a possible reduction to the bank’s easing program.
Bernanke said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.
Bernanke said the bank will not raise interest rates until the U.S. unemployment rate hits 6.5%.
The comments came after the minutes of the central bank’s June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.
Around half of Fed policymakers believe the bank should start to scale back bond purchases by the end of the year, while many others believe the labor market still remains too weak.
Data on Friday showed that U.S. consumer sentiment ticked lower in July, with the University of Michigan’s consumer sentiment index slipping to 83.9 from 84.1 in June, compared to expectations for a reading of 85.0.
Meanwhile, Philadelphia Fed President Charles Plosser said Friday the U.S. central bank should wind down its monetary stimulus program by the end of this year. Elsewhere, St. Louis Fed President James Bullard said the bank should not start tapering asset purchases if inflation remains weak.
In the week ahead, investors will be looking ahead to U.S. data on retail sales, consumer inflation and housing sector activity for indications that the U.S. recovery is on track. Meanwhile, Switzerland is to produce data on inflation and economic expectations.
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 Friday as there are no relevant events on this day.
Monday, July 15
Switzerland is to publish government data on producer price inflation.
Later Monday, the U.S. is to produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The U.S. is also to publish the Empire state manufacturing index and a report on business inventories.
Tuesday, July 16
The U.S. is to release official data on consumer price inflation, industrial production and the capacity utilization rate.
Wednesday, July 17
The ZEW Institute is to publish a report on economic expectations in Switzerland, a leading indicator of economic health.
The U.S. is to release official data on building permits, a leading indicator of future construction sector activity, as well as data on housing starts. The Federal Reserve is to release its Beige book.
Thursday, July 18
The U.S. is to release the weekly government report on initial jobless claims and the Philly Fed manufacturing index.