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Forex - USD/CHF weekly outlook: November 11 - 15

Published 11/10/2013, 06:01 AM
USD/CHF
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Investing.com - The dollar ended the week higher against the Swiss franc on Friday after data showing that the U.S. economy added more jobs than expected in October boosted expectations that the Federal Reserve may make its first reduction in stimulus as soon as next month.

USD/CHF ended Friday’s session at 0.9216, up 0.64% for the day, just below Thursday’s seven week high of 0.9249. For the week, the pair was up 1.27%, the second straight weekly gain.

The U.S. economy added 204,000 jobs in October, the Department of Labor said Friday, significantly higher than the 125,000 expected by economists. The unemployment rate ticked up to 7.3% from an almost five year low of 7.2% the previous month.

The robust data indicated that the U.S. economy shrugged off the impact of the government shutdown and fuelled expectations that the Fed may start to reduce its USD85 billion-a-month asset purchase program as soon as next month.

The report came one day after official data showed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, well above expectations for growth of 2%.

The Swiss franc showed little reaction after data on Friday showed that retail sales in Switzerland unexpectedly slowed in September.

Retail sales rose 1% on a year-over-year basis in September after rising at an annual rate of 2.5% in August and were 0.7% lower in September from August. Economists had forecast an annual increase of 2.5%.

In the week ahead, the calendar is light on economic data releases but investors will be closely watching Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve.

Ahead of the coming week, Investing.com has compiled a list of this and other significant events likely to affect the markets. The guide skips Monday through Wednesday as there are no relevant events on these days.

Thursday, November 14

Switzerland is to publish data on producer price inflation, a leading indicator of consumer inflation.

The U.S. is to release official data on the trade balance, the difference in value between imports and exports and the weekly report on initial jobless claims.

Friday, November 15

The U.S. is to round up the week with data on manufacturing activity in the New York region, as well as reports on industrial production and import prices.




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