Investing.com - The U.S. dollar rose against the Swiss franc on Friday, trimming some of the week’s losses as concerns over the handling of the euro zone’s debt crisis persisted while talks on Greece’s bailout continued for a third day.
USD/CHF hit 0.9305 on Friday, the pair’s lowest since January 3; the pair subsequently consolidated at 0.9346 by close of trade on Friday, tumbling 2.12% over the week.
The pair was likely to find support at 0.9266, the low of December 20 and resistance at 0.9411, the high if January 19.
Officials said on Friday that Greece was nearing an agreement with creditors on a debt restructuring deal, aimed at erasing EUR100 billion of the country’s EUR360 billion debt burden and securing another tranche of international aid.
Meanwhile, industry data showed that existing home sales in the U.S. rose less-than-expected in December, advancing to 4.61 million after a rise to 4.39 million the previous month.
Analysts had expected existing home sales to rise to 4.65 million in December.
The greenback fell broadly earlier in the week as successful government debt auctions by Spain and France eased concerns that borrowing costs for euro zone countries would rise, after ratings downgrades on the countries by Standard & Poor's earlier in the month.
Spain sold EUR6.61 billion of medium to long-term debt at broadly lower yields, exceeding the maximum target of EUR4.5 billion set for the auction, while France auctioned EUR7.97 billion of medium and long-term securities.
Sentiment was also boosted after the International Monetary Fund said it wanted to increase its lending capacity by as much as USD500 billion, having identified a potential need for USD1 trillion in coming years.
The dollar extended losses against the Swissie on Thursday after the U.S. Department of Labor said the number of people who filed for unemployment assistance in the week ending January 13 declined unexpectedly, falling to the lowest level in almost four years.
The number of individuals filing for initial jobless benefits fell to 352,000 from 402,000 the previous week, surpassing expectations for a fall to 385,000.
The data came after reports showing that the number of building permits issued in the U.S. was unchanged at 0.68 million in December, holding steady near the highest level since March 2010, while housing starts rose less-than-expected.
Data also showed that core consumer price inflation rose 0.1% in December, in line with expectations after a 0.2% rise the previous month, while consumer price inflation was flat in December, confounding expectations for a 0.1% rise.
In the coming week, investors will be eyeing developments in the euro zone, with finance ministers from the single currency bloc meeting in Brussels on Monday, with Greece’s debt restructuring deal likely to be at the top of the agenda.
Markets will also be closely watching the outcome of Thursday’s Federal Reserve policy setting meeting, as well as Friday’s preliminary data on U.S. fourth-quarter gross domestic product.
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, January 24
Switzerland is to release the UBS consumption indicator, which is a combined reading of five economic indicators.
Meanwhile, Swiss National Bank policymaker Jean-Pierre Danthine is due to speak later in the day; his comments will be closely watched for any possible indication of the future direction of monetary policy.
Wednesday, January 25
The U.S. is to release industry data on pending home sales, a leading indicator of demand in the housing market, as well as official data on crude oil stockpiles. The Federal Reserve is to announce the federal funds rate and publish its official rate statement.
Also Wednesday, the World Economic Forum is to begin its five-day annual meeting in Davos in Switzerland.
Thursday, January 26
In the U.S., official data is to be produced on durable goods, an important indicator of production, as well as on unemployment claims and new home sales, a key gauge of economic health.
Friday, January 27
Switzerland is to publish the KOF economic barometer, which is designed to forecast the direction of the economy over the following six months.
The U.S. is to round up the week with preliminary data on the country’s fourth quarter GDP and GDP price index, followed by revised data from the University of Michigan on consumer sentiment and inflation expectations.
USD/CHF hit 0.9305 on Friday, the pair’s lowest since January 3; the pair subsequently consolidated at 0.9346 by close of trade on Friday, tumbling 2.12% over the week.
The pair was likely to find support at 0.9266, the low of December 20 and resistance at 0.9411, the high if January 19.
Officials said on Friday that Greece was nearing an agreement with creditors on a debt restructuring deal, aimed at erasing EUR100 billion of the country’s EUR360 billion debt burden and securing another tranche of international aid.
Meanwhile, industry data showed that existing home sales in the U.S. rose less-than-expected in December, advancing to 4.61 million after a rise to 4.39 million the previous month.
Analysts had expected existing home sales to rise to 4.65 million in December.
The greenback fell broadly earlier in the week as successful government debt auctions by Spain and France eased concerns that borrowing costs for euro zone countries would rise, after ratings downgrades on the countries by Standard & Poor's earlier in the month.
Spain sold EUR6.61 billion of medium to long-term debt at broadly lower yields, exceeding the maximum target of EUR4.5 billion set for the auction, while France auctioned EUR7.97 billion of medium and long-term securities.
Sentiment was also boosted after the International Monetary Fund said it wanted to increase its lending capacity by as much as USD500 billion, having identified a potential need for USD1 trillion in coming years.
The dollar extended losses against the Swissie on Thursday after the U.S. Department of Labor said the number of people who filed for unemployment assistance in the week ending January 13 declined unexpectedly, falling to the lowest level in almost four years.
The number of individuals filing for initial jobless benefits fell to 352,000 from 402,000 the previous week, surpassing expectations for a fall to 385,000.
The data came after reports showing that the number of building permits issued in the U.S. was unchanged at 0.68 million in December, holding steady near the highest level since March 2010, while housing starts rose less-than-expected.
Data also showed that core consumer price inflation rose 0.1% in December, in line with expectations after a 0.2% rise the previous month, while consumer price inflation was flat in December, confounding expectations for a 0.1% rise.
In the coming week, investors will be eyeing developments in the euro zone, with finance ministers from the single currency bloc meeting in Brussels on Monday, with Greece’s debt restructuring deal likely to be at the top of the agenda.
Markets will also be closely watching the outcome of Thursday’s Federal Reserve policy setting meeting, as well as Friday’s preliminary data on U.S. fourth-quarter gross domestic product.
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, January 24
Switzerland is to release the UBS consumption indicator, which is a combined reading of five economic indicators.
Meanwhile, Swiss National Bank policymaker Jean-Pierre Danthine is due to speak later in the day; his comments will be closely watched for any possible indication of the future direction of monetary policy.
Wednesday, January 25
The U.S. is to release industry data on pending home sales, a leading indicator of demand in the housing market, as well as official data on crude oil stockpiles. The Federal Reserve is to announce the federal funds rate and publish its official rate statement.
Also Wednesday, the World Economic Forum is to begin its five-day annual meeting in Davos in Switzerland.
Thursday, January 26
In the U.S., official data is to be produced on durable goods, an important indicator of production, as well as on unemployment claims and new home sales, a key gauge of economic health.
Friday, January 27
Switzerland is to publish the KOF economic barometer, which is designed to forecast the direction of the economy over the following six months.
The U.S. is to round up the week with preliminary data on the country’s fourth quarter GDP and GDP price index, followed by revised data from the University of Michigan on consumer sentiment and inflation expectations.