Investing.com - The dollar fell to five-week lows against the Swiss franc on Friday after weaker-than-expected U.S. nonfarm payrolls data for March fuelled fears that the recovery in the labor market is losing momentum.
USD/CHF hit session lows of 0.9314, the pair’s lowest since February 28, before settling at 0.9340, down 0.62% for the day and extending the week’s losses to 1.34%.
The pair is likely to find support at 0.9279, the low of February 28 and resistance at 0.9432, Friday’s high.
The Department of Labor said the U.S. economy added 88,000 jobs last month, the smallest increase since last June and far below forecasts for an increase of 200,000. The U.S. unemployment rate ticked down to 7.6% from 7.7% in February.
Earlier Friday, a report by the Swiss National Bank showed that its foreign-currency reserves edged up to CHF438.3 billion last month, from CHF429.9 billion in February.
The slight rise indicated that the SNB may have stepped up efforts to defend the minimum exchange rate floor of 1.20 per euro imposed in September 2011 amid concerns over the potential implications of a bailout for Cyprus and ongoing political uncertainty in Italy.
Earlier in the week data showed that manufacturing activity in Switzerland contracted in March for the first time since December as instability in the euro zone weighed.
The SVME manufacturing PMI dropped to 48.3 in March, from 50.8 in February, missing expectations for a reading of 50.2, adding to indications that the economic recovery in Switzerland is slowing.
The euro ended the week close to five-week lows against the Swiss franc, with EUR/CHF settling at 1.2139, down 0.12% for the day and 0.21% lower for the week.
In the week ahead, investors will be awaiting Wednesday’s minutes of the Federal Reserve’s March policy meeting, amid speculation over when the central bank may begin to wind down its asset purchase program.
Market participants will also be watching U.S. data on retail sales and consumer sentiment on Friday in an attempt to gauge the strength of the U.S. economic recovery.
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 9
Switzerland is to release official data on consumer inflation and retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
Federal Reserve Chairman Ben Bernanke is to speak; his comments will be closely watched for indications of the future possible direction of monetary policy.
Wednesday, April 10
The Federal Reserve is to publish the minutes of its most recent policy meeting. The minutes give investors important insights into economic conditions from the bank’s perspective.
The U.S. is also to release government data on the federal budget balance.
Thursday, April 11
The U.S. is to publish the weekly government report on initial jobless claims and official data on import prices.
Friday, April 12
The U.S. is to round up the week with official data on retail sale, producer price inflation and business inventories, as well as preliminary data from the University of Michigan on consumer sentiment.
Also Friday, Fed Chairman Ben Bernanke is to speak; his comments will be closely watched for indications of the future possible direction of monetary policy.
USD/CHF hit session lows of 0.9314, the pair’s lowest since February 28, before settling at 0.9340, down 0.62% for the day and extending the week’s losses to 1.34%.
The pair is likely to find support at 0.9279, the low of February 28 and resistance at 0.9432, Friday’s high.
The Department of Labor said the U.S. economy added 88,000 jobs last month, the smallest increase since last June and far below forecasts for an increase of 200,000. The U.S. unemployment rate ticked down to 7.6% from 7.7% in February.
Earlier Friday, a report by the Swiss National Bank showed that its foreign-currency reserves edged up to CHF438.3 billion last month, from CHF429.9 billion in February.
The slight rise indicated that the SNB may have stepped up efforts to defend the minimum exchange rate floor of 1.20 per euro imposed in September 2011 amid concerns over the potential implications of a bailout for Cyprus and ongoing political uncertainty in Italy.
Earlier in the week data showed that manufacturing activity in Switzerland contracted in March for the first time since December as instability in the euro zone weighed.
The SVME manufacturing PMI dropped to 48.3 in March, from 50.8 in February, missing expectations for a reading of 50.2, adding to indications that the economic recovery in Switzerland is slowing.
The euro ended the week close to five-week lows against the Swiss franc, with EUR/CHF settling at 1.2139, down 0.12% for the day and 0.21% lower for the week.
In the week ahead, investors will be awaiting Wednesday’s minutes of the Federal Reserve’s March policy meeting, amid speculation over when the central bank may begin to wind down its asset purchase program.
Market participants will also be watching U.S. data on retail sales and consumer sentiment on Friday in an attempt to gauge the strength of the U.S. economic recovery.
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 9
Switzerland is to release official data on consumer inflation and retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
Federal Reserve Chairman Ben Bernanke is to speak; his comments will be closely watched for indications of the future possible direction of monetary policy.
Wednesday, April 10
The Federal Reserve is to publish the minutes of its most recent policy meeting. The minutes give investors important insights into economic conditions from the bank’s perspective.
The U.S. is also to release government data on the federal budget balance.
Thursday, April 11
The U.S. is to publish the weekly government report on initial jobless claims and official data on import prices.
Friday, April 12
The U.S. is to round up the week with official data on retail sale, producer price inflation and business inventories, as well as preliminary data from the University of Michigan on consumer sentiment.
Also Friday, Fed Chairman Ben Bernanke is to speak; his comments will be closely watched for indications of the future possible direction of monetary policy.