Investing.com - The U.S. dollar ended the week higher against the Swiss franc on Friday, as concerns over the outlook for global economic growth and lowered expectations for a fresh intervention by the European Central Bank boosted demand for the safe haven greenback.
USD/CHF hit 0.9808 on Friday, the pair’s highest since August 3; the pair subsequently consolidated at 0.9770 by close of trade on Friday, rising 0.84% over the week.
The pair is likely to find support at 0.9696, the low of August 9 and resistance at 0.9871, the high of August 3.
Market sentiment weakened broadly on Friday, as concerns over a global economic slowdown re-emerged after data showed that Chinese exports grew just 1.0% on the year in July, down from the 11.3% gain seen in June, while imports rose 4.7% year-over-year, down from 6.3% in June.
Earlier in the week, weaker-than-forecast German data underlined concerns over the impact of the long running debt crisis on the region’s largest economy.
On Thursday, the ECB said in its monthly bulletin that the economic outlook for the euro zone faced a number of downside risks, with financial market tensions and their potential impact on growth posing the key threats.
The ECB revised down its forecast for economic growth to 0.6% in 2013, down from 1% previously and forecast a 0.3% contraction in growth this year, slightly worse than its previous forecast of for a 0.2% contraction.
Meanwhile, optimism that the ECB will soon move to cut high Spanish and Italian borrowing costs faded as investors waited for more details of the bank’s proposed bond buying program to emerge.
In Switzerland, the State Secretariat for Economic Affairs said on Wednesday that the consumer confidence index dropped to minus 17 for the April to July period, down from a reading of minus 8 points in the three months to April, amid growing pessimism over the economic outlook and unemployment.
Analysts had expected the index to improve to a reading of minus 4.
In the week ahead, market participants will be awaiting data on second quarter growth from the euro zone and looking ahead to central bank minutes from the Bank of Japan and the Bank of England, amid ongoing speculation that world central banks may take steps to shore up economic growth.
Investors will also watching U.S. data on retail sales, inflation and housing in an attempt to assess 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 that day.
Tuesday, August 14
Switzerland is to release official data on producer price inflation, an important indicator of consumer inflation.
Later Tuesday, the U.S. is to publish official data on retail sales and producer price inflation, followed by data on business inventories.
Wednesday, August 15
The U.S. is to release official data on consumer price inflation, as well as a report on manufacturing activity in the New York area and government data on net long term securities transactions. The Federal Reserve is also to produce data on the capacity utilization rate and industrial production, followed by a government report on crude oil inventories.
Thursday, August 16
Switzerland is to produce a ZEW report on economic expectations, a leading indicator of economic health.
Later in the day, the U.S. is to publish official data on building permits, a key gauge of future construction activity, as well as weekly government data on unemployment claims. The country is also to release official data on housing starts and a report on manufacturing activity in the Philadelphia area.
Friday, August 17
The U.S. is to round up the week with a preliminary report by the University of Michigan on consumer sentiment and inflation expectations.
USD/CHF hit 0.9808 on Friday, the pair’s highest since August 3; the pair subsequently consolidated at 0.9770 by close of trade on Friday, rising 0.84% over the week.
The pair is likely to find support at 0.9696, the low of August 9 and resistance at 0.9871, the high of August 3.
Market sentiment weakened broadly on Friday, as concerns over a global economic slowdown re-emerged after data showed that Chinese exports grew just 1.0% on the year in July, down from the 11.3% gain seen in June, while imports rose 4.7% year-over-year, down from 6.3% in June.
Earlier in the week, weaker-than-forecast German data underlined concerns over the impact of the long running debt crisis on the region’s largest economy.
On Thursday, the ECB said in its monthly bulletin that the economic outlook for the euro zone faced a number of downside risks, with financial market tensions and their potential impact on growth posing the key threats.
The ECB revised down its forecast for economic growth to 0.6% in 2013, down from 1% previously and forecast a 0.3% contraction in growth this year, slightly worse than its previous forecast of for a 0.2% contraction.
Meanwhile, optimism that the ECB will soon move to cut high Spanish and Italian borrowing costs faded as investors waited for more details of the bank’s proposed bond buying program to emerge.
In Switzerland, the State Secretariat for Economic Affairs said on Wednesday that the consumer confidence index dropped to minus 17 for the April to July period, down from a reading of minus 8 points in the three months to April, amid growing pessimism over the economic outlook and unemployment.
Analysts had expected the index to improve to a reading of minus 4.
In the week ahead, market participants will be awaiting data on second quarter growth from the euro zone and looking ahead to central bank minutes from the Bank of Japan and the Bank of England, amid ongoing speculation that world central banks may take steps to shore up economic growth.
Investors will also watching U.S. data on retail sales, inflation and housing in an attempt to assess 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 that day.
Tuesday, August 14
Switzerland is to release official data on producer price inflation, an important indicator of consumer inflation.
Later Tuesday, the U.S. is to publish official data on retail sales and producer price inflation, followed by data on business inventories.
Wednesday, August 15
The U.S. is to release official data on consumer price inflation, as well as a report on manufacturing activity in the New York area and government data on net long term securities transactions. The Federal Reserve is also to produce data on the capacity utilization rate and industrial production, followed by a government report on crude oil inventories.
Thursday, August 16
Switzerland is to produce a ZEW report on economic expectations, a leading indicator of economic health.
Later in the day, the U.S. is to publish official data on building permits, a key gauge of future construction activity, as well as weekly government data on unemployment claims. The country is also to release official data on housing starts and a report on manufacturing activity in the Philadelphia area.
Friday, August 17
The U.S. is to round up the week with a preliminary report by the University of Michigan on consumer sentiment and inflation expectations.