Investing.com - The U.S. dollar fell to three-week lows against the Swiss franc on Friday as the Swissy surged to multi-year highs against the broadly weaker yen on the view that the Bank of Japan will implement additional easing measures next year.
USD/CHF ended Friday’s session at 0.9066, the lowest since November 1, down from 0.9127 on Thursday. For the week, the pair was down 0.66%.
The pair is likely to find support at 0.9015 and resistance at 0.9149, Friday’s high.
The Swiss franc rose above the 110 level against the yen for the first time since September 1990 on Friday after BoJ Governor Haruhiko Kuroda indicated that a fresh round of monetary easing could be on the cards.
Governor Kuroda said that the BoJ “would not hesitate” to take further steps in order to meet its 2% inflation target. The bank “has room to act against upside and downside risks”, he said.
The comments came at a news conference following a decision by the bank to keep monetary policy on hold on Thursday.
Elsewhere Thursday, Swiss National Bank board member Fritz Zurbruegg reiterated that the bank is prepared to enforce the 1.20 per euro minimum exchange rate by “buying foreign currency in unlimited quantities if necessary,” and added that the value of the Swiss franc remain high.
The SNB implemented the minimum exchange rate floor in September 2011 to stave off the threat of deflation and curb the rapid appreciation of the safe haven Swiss franc as a result of the debt crisis in the euro zone.
Demand for the dollar continued to be underpinned after Wednesday’s minutes of the Federal Reserve’s October meeting said the bank could start scaling back its USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
In the week ahead, the U.S. is to release a series of reports on the housing sector, as well as data on consumer confidence and durable goods orders. Meanwhile, Switzerland is to release official data on economic growth rates.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 25
Switzerland is to release data on the employment level during the previous quarter, a leading economic indicator.
The U.S. is to release private sector data on pending home sales, a leading indicator of economic health.
Tuesday, November 26
The U.S. is to produce data on building permits, a leading indicator of future construction activity as well as a report on housing starts. The nation is also to release private sector data on consumer confidence and house price inflation.
Wednesday, November 27
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on manufacturing activity in the Chicago region and revised data on consumer sentiment. The Labor Department is to release the weekly report on initial jobless claims one day ahead of schedule due to Thursday’s Thanksgiving holiday.
Thursday, November 28
Switzerland is to release data on third quarter gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health.
Markets in the U.S. will be closed for the Thanksgiving holiday.
Friday, November 29
Switzerland is to publish its KOF economic barometer.
USD/CHF ended Friday’s session at 0.9066, the lowest since November 1, down from 0.9127 on Thursday. For the week, the pair was down 0.66%.
The pair is likely to find support at 0.9015 and resistance at 0.9149, Friday’s high.
The Swiss franc rose above the 110 level against the yen for the first time since September 1990 on Friday after BoJ Governor Haruhiko Kuroda indicated that a fresh round of monetary easing could be on the cards.
Governor Kuroda said that the BoJ “would not hesitate” to take further steps in order to meet its 2% inflation target. The bank “has room to act against upside and downside risks”, he said.
The comments came at a news conference following a decision by the bank to keep monetary policy on hold on Thursday.
Elsewhere Thursday, Swiss National Bank board member Fritz Zurbruegg reiterated that the bank is prepared to enforce the 1.20 per euro minimum exchange rate by “buying foreign currency in unlimited quantities if necessary,” and added that the value of the Swiss franc remain high.
The SNB implemented the minimum exchange rate floor in September 2011 to stave off the threat of deflation and curb the rapid appreciation of the safe haven Swiss franc as a result of the debt crisis in the euro zone.
Demand for the dollar continued to be underpinned after Wednesday’s minutes of the Federal Reserve’s October meeting said the bank could start scaling back its USD85 billion-a-month asset purchase program in the “coming months” if the economy continues to improve as expected.
In the week ahead, the U.S. is to release a series of reports on the housing sector, as well as data on consumer confidence and durable goods orders. Meanwhile, Switzerland is to release official data on economic growth rates.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 25
Switzerland is to release data on the employment level during the previous quarter, a leading economic indicator.
The U.S. is to release private sector data on pending home sales, a leading indicator of economic health.
Tuesday, November 26
The U.S. is to produce data on building permits, a leading indicator of future construction activity as well as a report on housing starts. The nation is also to release private sector data on consumer confidence and house price inflation.
Wednesday, November 27
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on manufacturing activity in the Chicago region and revised data on consumer sentiment. The Labor Department is to release the weekly report on initial jobless claims one day ahead of schedule due to Thursday’s Thanksgiving holiday.
Thursday, November 28
Switzerland is to release data on third quarter gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health.
Markets in the U.S. will be closed for the Thanksgiving holiday.
Friday, November 29
Switzerland is to publish its KOF economic barometer.