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Forex - USD/CHF weekly outlook: January 3-7

Published 01/02/2011, 06:15 AM
USD/CHF
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Investing.com – Last week saw the Swiss franc touch a record high against the U.S. dollar on Friday, amid thin trade on the last trading day of the year.

USD/CHF hit 0.9299 on Friday, the pair’s all-time low; the pair subsequently consolidated at 0.9338 by close of trade, tumbling 2.8% over the week.

The pair is likely to find support at 0.93 and resistance at 0.9459, last Thursday’s high.

The Swiss franc had been hitting record highs against both the dollar and the euro in recent weeks, amid increased safe haven demand as investors remained concerned over the sustainability of the U.S. economic recovery and the ongoing sovereign debt crisis in the euro zone.

However a string of strong U.S. economic data released Thursday supported the view that the U.S. economic recovery gained some momentum at the year’s end, bolstering the outlook for 2011.

Government data showed that U.S. initial jobless claims fell to their lowest level in more than two years, while the Chicago PMI rose in December at its fastest pace since 1988. A separate report by the National Association of Realtors said that pending home sales rose more-than-expected in November, up for the second straight month.

Next week, the U.S. is to release employment data for December on Friday while Federal Reserve Chairman Ben Bernanke is to testify before the Senate budget panel the same day.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, January 3


Markets in Switzerland are to remain closed for the New Year’s Day bank holiday while Credit Suisse is to publish a report on growth in the manufacturing sector.

The U.S. is to publish industry data on manufacturing activity, a leading indicator of economic health.

Tuesday, January 4

In the U.S., the Federal Reserve is to publish the minutes of its most recent monetary policy committee meeting, which provide an in-depth insight into the country’s economic and financial outlook. The country is also to publish official data on factory orders, a leading indicator of industrial production.

Wednesday, January 5

The U.S. is to publish data on ADP non-farm payrolls, which leads the government-released employment data by two days. Later in the day, the country is to publish a report on service sector growth, a leading indicator of economic growth as well as a report on crude oil stockpiles.

Thursday, January 6

The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health.

Meanwhile, Switzerland is to publish official data on consumer price inflation, which accounts for a majority of overall inflation.

Friday, January 7

The U.S. is to round up the week with key data on non-farm employment change and a report on the country's unemployment rate, both leading indicators of economic health. Later in the day, the country is to publish a report on consumer credit.

In addition, Switzerland is to publish official data on the country’s unemployment rate.


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