Investing.com - The dollar ended the week little changed against the Swiss franc on Friday as uncertainty over how soon the Federal Reserve will start to unwind its stimulus program continued.
USD/CHF edged up 0.03% to 0.9261 at the close on Friday, off Thursday’s highs of 0.9395, ending the week just 0.04% higher.
The pair is likely to find support at 0.9216, Friday’s low and resistance at 0.9347, the high of August 13.
Safe haven demand for the dollar was boosted on Friday after the University of Michigan said its consumer sentiment index fell from a six-year high of 85.1 in July to 80.0 in August. Economists had expected the index to tick up to 85.5.
Separate reports showed that U.S. housing starts rose less-than-expected in July and building permits also fell short of expectations last month.
The data came amid ongoing speculation over how soon the Federal Reserve will start to phase out its bond buying program. Fed Chairman Ben Bernanke has said that the decision to begin tapering the bank’s USD85 billion-a-month asset purchase program will depend on whether economic data is strong enough.
Expectations that the Fed may begin tapering as soon as September were boosted on Thursday after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
Elsewhere, the euro ended the week higher against the Swiss franc after data on Wednesday showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
Eurostat said the euro zone’s economy expanded by 0.3% in the three months to June. Economists had expected quarter-on-quarter growth of 0.2%. France’s economy expanded 0.5%, following two consecutive quarters of contraction, while Germany’s economy expanded by a larger than forecast 0.7%.
EUR/CHF was at 1.2345 at the close of trade on Friday, down from highs of 1.2432 on Thursday, to end the week 0.30% higher.
In the week ahead, investors will be looking ahead to Wednesday’s minutes of the Federal Reserve’s most recent meeting, while U.S. data on initial jobless claims and the housing sector will also be closely watched.
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 and Tuesday as there are no relevant events on these days.
Wednesday, August 21
The U.S. is to publish private sector data on existing home sales, a leading indicator of economic health. In addition the Federal Reserve is to publish the minutes of its most recent policy setting meeting.
Thursday, August 22
The U.S. is to release the weekly government report on initial jobless claims.
Friday, August 23
The U.S. is to round up the week with data on new home sales, a leading indicator of economic health.
USD/CHF edged up 0.03% to 0.9261 at the close on Friday, off Thursday’s highs of 0.9395, ending the week just 0.04% higher.
The pair is likely to find support at 0.9216, Friday’s low and resistance at 0.9347, the high of August 13.
Safe haven demand for the dollar was boosted on Friday after the University of Michigan said its consumer sentiment index fell from a six-year high of 85.1 in July to 80.0 in August. Economists had expected the index to tick up to 85.5.
Separate reports showed that U.S. housing starts rose less-than-expected in July and building permits also fell short of expectations last month.
The data came amid ongoing speculation over how soon the Federal Reserve will start to phase out its bond buying program. Fed Chairman Ben Bernanke has said that the decision to begin tapering the bank’s USD85 billion-a-month asset purchase program will depend on whether economic data is strong enough.
Expectations that the Fed may begin tapering as soon as September were boosted on Thursday after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
Elsewhere, the euro ended the week higher against the Swiss franc after data on Wednesday showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession.
Eurostat said the euro zone’s economy expanded by 0.3% in the three months to June. Economists had expected quarter-on-quarter growth of 0.2%. France’s economy expanded 0.5%, following two consecutive quarters of contraction, while Germany’s economy expanded by a larger than forecast 0.7%.
EUR/CHF was at 1.2345 at the close of trade on Friday, down from highs of 1.2432 on Thursday, to end the week 0.30% higher.
In the week ahead, investors will be looking ahead to Wednesday’s minutes of the Federal Reserve’s most recent meeting, while U.S. data on initial jobless claims and the housing sector will also be closely watched.
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 and Tuesday as there are no relevant events on these days.
Wednesday, August 21
The U.S. is to publish private sector data on existing home sales, a leading indicator of economic health. In addition the Federal Reserve is to publish the minutes of its most recent policy setting meeting.
Thursday, August 22
The U.S. is to release the weekly government report on initial jobless claims.
Friday, August 23
The U.S. is to round up the week with data on new home sales, a leading indicator of economic health.