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Forex - USD/CHF weekly outlook: June 30 - July 4

Published 06/29/2014, 06:35 AM
Dollar falls to 5-week lows against Swiss franc
USD/CHF
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Investing.com - The dollar fell to five-week lows against the Swiss franc on Friday, despite improved U.S. consumer sentiment data after poor economic reports earlier in the week undermined the outlook for the broader recovery.

USD/CHF was down 0.32% to 0.8906 late Friday, the lowest level since May 21. The pair ended the week with losses of 0.55%.

The pair is likely to find support at 0.8885 and resistance at 0.8937, Friday’s high.

The final reading of the University of Michigan's consumer sentiment index rose to 82.5 this month from 81.9 in May, compared to expectations of 82.2.

The report did little to alter expectations that the Federal Reserve will keep rates on hold for an extended period after data on Wednesday showed that the U.S. economy contracted more sharply than expected in the first three months of 2014.

The Commerce Department reported that U.S. gross domestic product contracted at an annual rate of 2.9% in the first quarter, compared to the consensus forecast for a decline of 1.7%.

U.S. first quarter GDP was initially reported to have increased by 0.1%, but was subsequently revised to show a contraction of 1.0%.

The dollar came under additional pressure after data on Thursday showed that U.S. consumer spending rose by just 0.2% in May, below forecasts for 0.4%.

In the week ahead, investors will be looking to the U.S. nonfarm payrolls report, due to be released one day early on Thursday for further indications on the strength of the labor market.

Ahead of the coming week, Investing.com has compiled a list of this and other significant events likely to affect the markets.

Monday, June 30

The U.S. is to produce data on manufacturing activity in the Chicago region and a report on pending home sales.

Tuesday, July 1

Switzerland is to release its SVME manufacturing index.

In the U.S., the Institute of Supply Management is to publish a report on manufacturing activity.

Wednesday, July 2

The U.S. is to release the ADP report on private sector job creation. The U.S. is also to release data on factory orders.

Later Wednesday, Fed Chair Janet Yellen is to speak at an event in Washington; her comments will be closely watched.

Thursday, July 3

The U.S. is to release data on the trade balance, as well as the weekly report on initial jobless claims. The U.S. is also to publish what will be closely watched government data on nonfarm payrolls and the unemployment rate, one day ahead of schedule due to the fourth of July holiday.

Later Thursday, the ISM is to publish a report service sector activity.

Friday, July 4

Markets in the U.S. are to remain closed for the Independence Day holiday.

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