Investing.com – Last week saw the U.S. dollar advance to a 5-week high against the Swiss franc before pairing gains amid uncertainty over the scope and potential impact of a fresh round of monetary easing by the U.S. Federal Reserve.
USD/CHF hit 0.9928 on Wednesday, the pair’s highest since September 22; the pair subsequently consolidated at 0.9821 by close of trade on Friday, gaining 0.78% over the week.
The pair is likely to find support at 0.9571, the low of October 20 and short-term resistance at 0.9928, last Wednesday’s high.
The dollar’s gains came after the Wall Street Journal reported Tuesday that the Federal Reserve was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, contrary to market expectations of purchases in excess of USD 1 trillion.
Official data released Friday seemed to underline expectations that the Fed will intervene to support the U.S. economic recovery. U.S. GDP rose at an annual rate of 2.0% in the third quarter, in line with expectations, after rising 1.7% in the second quarter.
However the real final sales component - the measure of demand in the U.S. - rose by only 0.6%. That was down from 0.9% in the second quarter and 1.1% in the first quarter.
Meanwhile, the University of Michigan consumer-sentiment index unexpectedly fell to 67.7 in October. Economists had expected the index to rise to 68.0.
Next week’s economic calendar contains events capable of shaping currency markets for several weeks to come, with the Fed's November 2-3 FOMC meeting and U.S. nonfarm payrolls. In addition, the U.S. is to release key weekly data on initial jobless claims as well as data on pending home sales and reports on manufacturing and service sector growth.
Meanwhile, Switzerland is to publish key data on manufacturing, inflation and retail sales.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 1
The U.S. will begin the week by publishing official data on personal income as well as data on personal spending, which accounts for the majority of overall economic activity. The country is also to publish industry data on manufacturing, a leading indicator of economic health.
Meanwhile, Switzerland is to publish industry data on manufacturing production, a leading indicator of economic health.
Tuesday, November 2
Switzerland is to publish official data on retail sales, a leading indicator of overall consumer spending.
Wednesday, November 3
The U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish industry data on service sector growth.
In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement will be followed by the heavily anticipated FOMC rate statement.
Later in the day, the Swiss National Bank’s Vice-Chairman Thomas Jordan is due to speak at a public engagement; his comments will be closely watched for any clues to the future direction of monetary policy.
Thursday, November 4
The U.S. is to publish key weekly data on initial jobless claims, the nation’s earliest economic data and a leading indicator of overall economic health. The country is also to publish quarterly data on non-farm productivity and labor costs, both leading inflationary indicators.
Meanwhile, Switzerland is to publish data on consumer price inflation, a leading indicator of economic growth.
Friday, November 5
The U.S. is to round up the week with data on non-farm employment change and a report on the country's unemployment rate. The country will also release official data on pending home sales, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.
USD/CHF hit 0.9928 on Wednesday, the pair’s highest since September 22; the pair subsequently consolidated at 0.9821 by close of trade on Friday, gaining 0.78% over the week.
The pair is likely to find support at 0.9571, the low of October 20 and short-term resistance at 0.9928, last Wednesday’s high.
The dollar’s gains came after the Wall Street Journal reported Tuesday that the Federal Reserve was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, contrary to market expectations of purchases in excess of USD 1 trillion.
Official data released Friday seemed to underline expectations that the Fed will intervene to support the U.S. economic recovery. U.S. GDP rose at an annual rate of 2.0% in the third quarter, in line with expectations, after rising 1.7% in the second quarter.
However the real final sales component - the measure of demand in the U.S. - rose by only 0.6%. That was down from 0.9% in the second quarter and 1.1% in the first quarter.
Meanwhile, the University of Michigan consumer-sentiment index unexpectedly fell to 67.7 in October. Economists had expected the index to rise to 68.0.
Next week’s economic calendar contains events capable of shaping currency markets for several weeks to come, with the Fed's November 2-3 FOMC meeting and U.S. nonfarm payrolls. In addition, the U.S. is to release key weekly data on initial jobless claims as well as data on pending home sales and reports on manufacturing and service sector growth.
Meanwhile, Switzerland is to publish key data on manufacturing, inflation and retail sales.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 1
The U.S. will begin the week by publishing official data on personal income as well as data on personal spending, which accounts for the majority of overall economic activity. The country is also to publish industry data on manufacturing, a leading indicator of economic health.
Meanwhile, Switzerland is to publish industry data on manufacturing production, a leading indicator of economic health.
Tuesday, November 2
Switzerland is to publish official data on retail sales, a leading indicator of overall consumer spending.
Wednesday, November 3
The U.S. is to publish a key monthly report on ADP non-farm employment change, which leads government data by two days. The country is also to publish industry data on service sector growth.
In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement will be followed by the heavily anticipated FOMC rate statement.
Later in the day, the Swiss National Bank’s Vice-Chairman Thomas Jordan is due to speak at a public engagement; his comments will be closely watched for any clues to the future direction of monetary policy.
Thursday, November 4
The U.S. is to publish key weekly data on initial jobless claims, the nation’s earliest economic data and a leading indicator of overall economic health. The country is also to publish quarterly data on non-farm productivity and labor costs, both leading inflationary indicators.
Meanwhile, Switzerland is to publish data on consumer price inflation, a leading indicator of economic growth.
Friday, November 5
The U.S. is to round up the week with data on non-farm employment change and a report on the country's unemployment rate. The country will also release official data on pending home sales, while Federal Reserve Chairman Ben Bernanke is due to deliver a speech at a public engagement. His comments will be closely scrutinized for any clues to the future direction of monetary policy.