Investing.com - The U.S. dollar ended the week sharply lower against the Swiss franc on Friday, as new hopes for progress in tackling the euro zone’s debt crisis boosted risk sentiment, sending the greenback broadly lower.
USD/CHF 0.9081 on Friday, the pair’s lowest since April 3; the pair subsequently consolidated at 0.9087, tumbling 1.23% over the week.
The pair is likely to find support at 0.9045, the low of March 2 and resistance at 0.9181, the high of April 17.
Market sentiment strengthened on Friday after the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis in the euro zone.
Elsewhere, the Ifo Institute for Economic Research said its index of German business climate ticked up to 109.9 in April, from 109.8 in the preceding month, against expectations for a decline to 109.5.
Sentiment came under pressure earlier in the week, as Spain’s borrowing costs rose above 6% amid fears that the government will struggle to reduce one of the largest deficits in the euro zone, in the face of a looming recession.
In the U.S., data on Thursday showed that manufacturing activity in the Philadelphia-region expanded at a slower rate than expected in April and U.S. existing home sales declined unexpectedly last month.
The data came after a government report showing that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, while the previous week’s figure was revised higher.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
The soft data sparked concerns over the strength of the U.S. economic recovery, ahead of the Federal Reserve’s two-day policy meeting this week.
Meanwhile, the Swiss government appointed Thomas Jordan as president of the central bank on Thursday. His appointment was not expected to have any major impact on the direction of the bank’s monetary policy.
The nomination came after a ZEW report showed that economic expectations for Switzerland rose to 2.1 in March from a flat reading the previous month.
In the week ahead, investors will be eyeing the Fed’s rate statement for any signs that the central bank is leaning towards another round of monetary easing.
In addition, the U.S. is set to release preliminary data on first quarter gross domestic product, while Switzerland is to publish a report on trade balance.
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 Monday as there are no relevant events on this day.
Tuesday, April 24
Switzerland is to publish government data on trade balance, the difference in value between imports and exports.
Meanwhile, the U.S. is to produce a report on house price inflation, a key indicator of the housing industry’s health, as well as a Conference Board report on consumer confidence and government data on new home sales.
Wednesday, April 25
The U.S. is to publish government data on durable goods orders, a leading indicator of production, and crude oil stockpiles. The Federal Reserve is to announce its benchmark interest rate and release its rate statement. Also Wednesday, U.S. Treasury Secretary Timothy Geithner is scheduled to speak.
Thursday, April 26
The U.S. is to publish government data on initial unemployment claims, an important signal of overall economic health, as well as industry data on pending home sales.
Friday, April 27
Switzerland is to publish a report on the KOF economic barometer, which is a combined reading of 12 economic indicators.
The U.S. is to round up the week with preliminary data on first quarter GDP, as well as reports on the GDP price index and employment cost inflation. In addition, the University of Michigan is to release revised data on consumer sentiment.
USD/CHF 0.9081 on Friday, the pair’s lowest since April 3; the pair subsequently consolidated at 0.9087, tumbling 1.23% over the week.
The pair is likely to find support at 0.9045, the low of March 2 and resistance at 0.9181, the high of April 17.
Market sentiment strengthened on Friday after the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis in the euro zone.
Elsewhere, the Ifo Institute for Economic Research said its index of German business climate ticked up to 109.9 in April, from 109.8 in the preceding month, against expectations for a decline to 109.5.
Sentiment came under pressure earlier in the week, as Spain’s borrowing costs rose above 6% amid fears that the government will struggle to reduce one of the largest deficits in the euro zone, in the face of a looming recession.
In the U.S., data on Thursday showed that manufacturing activity in the Philadelphia-region expanded at a slower rate than expected in April and U.S. existing home sales declined unexpectedly last month.
The data came after a government report showing that the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, while the previous week’s figure was revised higher.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 14 fell by 2,000 to a seasonally adjusted 386,000, disappointing expectations for a decline of 18,000 to 370,000.
The previous week’s figure was revised up to 388,000 from 380,000.
The soft data sparked concerns over the strength of the U.S. economic recovery, ahead of the Federal Reserve’s two-day policy meeting this week.
Meanwhile, the Swiss government appointed Thomas Jordan as president of the central bank on Thursday. His appointment was not expected to have any major impact on the direction of the bank’s monetary policy.
The nomination came after a ZEW report showed that economic expectations for Switzerland rose to 2.1 in March from a flat reading the previous month.
In the week ahead, investors will be eyeing the Fed’s rate statement for any signs that the central bank is leaning towards another round of monetary easing.
In addition, the U.S. is set to release preliminary data on first quarter gross domestic product, while Switzerland is to publish a report on trade balance.
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 Monday as there are no relevant events on this day.
Tuesday, April 24
Switzerland is to publish government data on trade balance, the difference in value between imports and exports.
Meanwhile, the U.S. is to produce a report on house price inflation, a key indicator of the housing industry’s health, as well as a Conference Board report on consumer confidence and government data on new home sales.
Wednesday, April 25
The U.S. is to publish government data on durable goods orders, a leading indicator of production, and crude oil stockpiles. The Federal Reserve is to announce its benchmark interest rate and release its rate statement. Also Wednesday, U.S. Treasury Secretary Timothy Geithner is scheduled to speak.
Thursday, April 26
The U.S. is to publish government data on initial unemployment claims, an important signal of overall economic health, as well as industry data on pending home sales.
Friday, April 27
Switzerland is to publish a report on the KOF economic barometer, which is a combined reading of 12 economic indicators.
The U.S. is to round up the week with preliminary data on first quarter GDP, as well as reports on the GDP price index and employment cost inflation. In addition, the University of Michigan is to release revised data on consumer sentiment.