Investing.com - The U.S. dollar ended the week lower against the Swiss franc on Friday, following downbeat U.S. new home sales data but the greenback remained supported amid signs of improvement of the domestic economy.
USD/CHF hit 0.9066 on Friday, the pair’s lowest since March 2; the pair subsequently consolidated at 0.9078 by close of trade on Friday, shedding 0.80% over the week.
The pair was likely to find support at 0.9045, the low of March 2 and resistance at 0.9153, the high of March 20.
The Swissie fell to a three-week low against the dollar on Friday after the U.S. Commerce Department said new home sales dropped 1.6% to a 313,000 annual pace, the slowest since October, from a 318,000 annual rate in January and against expectations for an increase to 325,000.
The greenback remained supported, however, after the Federal Reserve upgraded its view on the economy earlier this month, leading investors to trim back expectations for a third round of monetary easing from the central bank.
The U.S. outlook was also boosted by data Thursday showing that jobless claims fell to the lowest level since February 2008 last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 17 fell by 5,000 to a seasonally adjusted 348,000, beating expectations for a decline of 3,000 to 350,000.
The previous week’s figure was revised up to 353,000 from 351,000.
Meanwhile, a government report showed that Switzerland’s trade surplus widened far more-than-expected in February, climbing to CHF2.68 billion from CHF1.50 billion the previous month.
Analysts had expected the trade surplus to widen to CHF1.97 billion in February.
Earlier in the week, data also showed that Swiss industrial production advanced 7.9% in the fourth quarter, exceeding expectations for a 0.4% rise.
The previous month’s figure had been downwardly revised to a 2% decline from a 1.4% fall.
In the week ahead, market participants will be looking ahead to Friday’s meeting of euro zone finance ministers to discuss the lending capacity of the region’s permanent bailout fund, the European Financial Stability Facility.
Meanwhile, the U.S. is to release data on consumer confidence, pending homes sales, and factory output, all of which will be closely watched in order 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.
Monday, March 26
Federal Reserve Chairman Ben Bernanke is scheduled to speak at the National Association for Business Economists 2012 Policy Conference. The U.S. is also to publish industry data on pending home sales, a key gauge of economic health.
Tuesday, March 27
The U.S. is to produce a Standard & Poor’s/Case Shiller composite-20 house price inflation report, as well as industry data on consumer confidence.
Later in the day, Fed Chairman Bernanke is due to deliver the third part of a lecture titled "The Federal Reserve and its Role in Today's Economy" at the George Washington University School of Business, in Washington.
Wednesday, March 28
The U.S. is to publish government data on durable goods orders, a leading indicator of production, followed by a report on crude oil stockpiles.
Thursday, March 29
The U.S. is to publish government data on unemployment claims, a key signal of overall economic health, as well as final data on fourth quarter GDP. Fed Chairman Bernanke is also due to speak.
Friday, March 30
Switzerland is to release data on the KOF economic barometer.
The U.S. is to round up the week with government data on personal consumption expenditures and personal spending as well as industry data on the purchasing managers’ index in Chicago. In addition, the University of Michigan is to release revised data on consumer sentiment.
USD/CHF hit 0.9066 on Friday, the pair’s lowest since March 2; the pair subsequently consolidated at 0.9078 by close of trade on Friday, shedding 0.80% over the week.
The pair was likely to find support at 0.9045, the low of March 2 and resistance at 0.9153, the high of March 20.
The Swissie fell to a three-week low against the dollar on Friday after the U.S. Commerce Department said new home sales dropped 1.6% to a 313,000 annual pace, the slowest since October, from a 318,000 annual rate in January and against expectations for an increase to 325,000.
The greenback remained supported, however, after the Federal Reserve upgraded its view on the economy earlier this month, leading investors to trim back expectations for a third round of monetary easing from the central bank.
The U.S. outlook was also boosted by data Thursday showing that jobless claims fell to the lowest level since February 2008 last week.
The Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 17 fell by 5,000 to a seasonally adjusted 348,000, beating expectations for a decline of 3,000 to 350,000.
The previous week’s figure was revised up to 353,000 from 351,000.
Meanwhile, a government report showed that Switzerland’s trade surplus widened far more-than-expected in February, climbing to CHF2.68 billion from CHF1.50 billion the previous month.
Analysts had expected the trade surplus to widen to CHF1.97 billion in February.
Earlier in the week, data also showed that Swiss industrial production advanced 7.9% in the fourth quarter, exceeding expectations for a 0.4% rise.
The previous month’s figure had been downwardly revised to a 2% decline from a 1.4% fall.
In the week ahead, market participants will be looking ahead to Friday’s meeting of euro zone finance ministers to discuss the lending capacity of the region’s permanent bailout fund, the European Financial Stability Facility.
Meanwhile, the U.S. is to release data on consumer confidence, pending homes sales, and factory output, all of which will be closely watched in order 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.
Monday, March 26
Federal Reserve Chairman Ben Bernanke is scheduled to speak at the National Association for Business Economists 2012 Policy Conference. The U.S. is also to publish industry data on pending home sales, a key gauge of economic health.
Tuesday, March 27
The U.S. is to produce a Standard & Poor’s/Case Shiller composite-20 house price inflation report, as well as industry data on consumer confidence.
Later in the day, Fed Chairman Bernanke is due to deliver the third part of a lecture titled "The Federal Reserve and its Role in Today's Economy" at the George Washington University School of Business, in Washington.
Wednesday, March 28
The U.S. is to publish government data on durable goods orders, a leading indicator of production, followed by a report on crude oil stockpiles.
Thursday, March 29
The U.S. is to publish government data on unemployment claims, a key signal of overall economic health, as well as final data on fourth quarter GDP. Fed Chairman Bernanke is also due to speak.
Friday, March 30
Switzerland is to release data on the KOF economic barometer.
The U.S. is to round up the week with government data on personal consumption expenditures and personal spending as well as industry data on the purchasing managers’ index in Chicago. In addition, the University of Michigan is to release revised data on consumer sentiment.