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Forex - USD/CHF weekly outlook: November 29-December 3

Published 11/28/2010, 06:08 AM
USD/CHF
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Investing.com – The week beginning November 29 comes after one which saw the U.S. dollar advance back above parity with the Swiss franc, to close the week's trading hovering just below a 2-month high.

USD/CHF hit 1.0053 on Friday, the pair’s highest since September 21; the pair subsequently consolidated at 1.0028 by close of trade, jumping 1.06% over the week.

The pair is likely to find support at 0.9848, last Tuesday’s low and resistance at 1.0181, the high of September 17.

The dollar’s gains came as concerns over sovereign debt contagion in the euro zone and escalating tensions on the Korean peninsula boosted demand for the currency as a safe haven.

Meanwhile, official data released last week painted a mixed picture of the U.S. economic recovery.

On Wednesday, Department of Labor data showed that the number of people who filed for unemployment assistance in the U.S. in the week ended November 20 fell to the lowest level since July 2008.

Separate reports showed that U.S. consumer sentiment rose to a 5-month high in November, while U.S. personal spending rose for the fourth consecutive month in October.

But official data also showed that both U.S. core durable goods orders and durable goods orders, which include transportation items, tumbled unexpectedly in October, while U.S. new home sales also fell unexpectedly in October.

Next week, the U.S. is to release data on ADP non-farm payrolls on Wednesday, ahead of the closely watched government data on non-farm employment on Friday. The government is also to publish its weekly report on initial jobless claims.

In addition, the U.S. is to release data on consumer confidence, pending home sales, manufacturing and service sector growth while the chairman of the Federal Reserve is to speak at a public engagement.

Meanwhile, Switzerland is to publish release official data on its gross domestic product, retail sales, manufacturing and inflation as well as a key consumption indicator.

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

Tuesday, November 30

The U.S. is to publish industry data on house prices, an important indicator of economic health as well as data on consumer confidence, a leading indicator of consumer spending. The country is also to release an index of manufacturing growth in the Chicago area, while Federal Reserve Chairman, Ben Bernanke is to speak at a public engagement.

Switzerland is to publish its UBS consumption indicator, a combined reading of five economic indicators including consumer confidence, consumer spending, tourism, new car sales, and retail activity.

Wednesday, December 1

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 revised data on nonfarm productivity, as well as official data on manufacturing activity, construction spending, total vehicle sales and crude oil inventories.

In addition, the Federal Reserve is to publish its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.

Elsewhere, Switzerland is to produce data on manufacturing activity, a key indicator of economic health.

Thursday, December 2

The U.S. is to publish key weekly data on initial jobless claims, a leading indicator of overall economic health. The country will also release official data on pending home sales and natural gas storage.

Meanwhile, Switzerland is to publish third quarter GDP data, the broadest measure of economic activity and the primary gauge of the economy's health, as well as a report on retail sales, a leading indicator of consumer spending.

Friday, December 3

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. The country is also to publish industry data on service sector growth as well as official data on factory orders.

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

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