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Forex - USD/CHF weekly outlook: August 23-27

Published 08/22/2010, 08:06 AM
USD/CHF
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Investing.com – Last week saw the U.S. dollar tumble to an 8-month low against the Swiss franc, amid growing risk aversion, after worse-than-expected data on U.S. initial jobless claims.

USD/CHF hit 1.0257 on Thursday, the pair’s lowest since January 19; the pair subsequently consolidated at 1.0337 by close of trade on Friday, tumbling 1.35% over the week.

The pair is likely to find support at 1.0257, last Thursday’s low and an 8-month low and resistance at 1.0533, the high of August 16.

On Thursday, the U.S. Department of Labor said that U.S. jobless claims unexpectedly jumped to their highest level in 9 months, boosting demand for the "safe haven" franc.

Meanwhile, Swiss government data released last week showed that Switzerland’s trade surplus widened more-than-expected in July, while a report by the ZEW Centre for Economic Research showed that Swiss economic sentiment posted a sharp gain.
 
Next week in the U.S., attention will turn to Federal Reserve Chairman Ben Bernanke, who is set to deliver a speech on U.S. economic outlook, while official data is due on GDP, initial unemployment claims, manufacturing production and home sales.

Meanwhile, Switzerland is to produce key data on the country’s employment level, while the KOF research group is to publish an index of leading Swiss economic indicators.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CHF.

Monday, August 23

In the U.S., President of the Federal Reserve Bank of Kansas, Thomas Hoenig is expected to speak.

Tuesday, August 24

The U.S. is to produce key data on manufacturing activity. The country is also to produce data on existing home sales, a leading indicator of health in the housing sector.

Wednesday, August 25

The U.S. is to produce key data on durable goods orders, a leading indicator of production, as well as data on new home sales. The country is also to produce a report on crude oil inventories.

Thursday, August 26

The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health as well as data on natural gas inventories.

Meanwhile, Switzerland is to produce key data on the country’s employment level.

Friday, August 27


In the U.S. the President of the U.S. Federal Reserve Ben Bernanke is set to give a speech on the economic outlook for the U.S. Meanwhile, the country is to release key data on GDP, the leading indicator of economic growth.

Also Friday, the U.S. is to release data on consumer sentiment and inflation expectations.

Meanwhile, in Switzerland, the KOF research group is to publish an index of leading economic indicators designed to predict the direction of the economy over the following six months.


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