Investing.com - The U.S. dollar ended the week modestly higher against the Swiss franc on Friday, as uncertainty over the prospects for a Spanish bailout and concerns over the outlook for global growth supported demand for the relative safety of the greenback.
USD/CHF hit 0.9431 on Wednesday, the pair’s highest since October 1; the pair subsequently consolidated at 0.9334 by close of trade on Friday, 0.41% for the week.
The pair is likely to find support at 0.9295, the low of October 8 and resistance at 0.9431, Wednesday’s high.
The dollar slipped lower against the Swiss franc on Friday, amid speculation that Spain was moving closer to requesting fiscal aid from its euro zone partners following a downgrade by ratings agency Standard & Poor’s.
A bailout request by Madrid would trigger the European Central Bank’s bond purchasing program, aimed at lowering borrowing costs for struggling euro zone states.
Market sentiment was also boosted after official data showed that U.S. consumer sentiment rose to its highest level in five years in October and a separate report showing that producer price inflation rose more-than-forecast in September.
The University of Michigan said that its consumer sentiment index rose to a seasonally adjusted 83.1 from 78.3 in September, the highest level since September 2007.
The data came one day after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits fell by 30,000 to a seasonally adjusted 339,000 in the previous week, compared to expectations for an increase of 1,000.
However, as the figures were released a spokesman for the Labor Department said one large state had not reported additional quarterly figures, accounting for a significant part of the steep decline in claims.
Concerns over the outlook for the global economy continued after International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it called a “slow and bumpy” economic recovery.
In the week ahead, markets will continue to continue to focus on whether Spain will formally request a bailout and if international creditors will extend loans to Greece as the country struggles to meet deficit reduction targets.
Meanwhile, the U.S. is to release a flurry of data, including reports on retail sales, manufacturing activity in New York and Philadelphia, initial jobless claims and housing starts, among others.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 15
Switzerland is to release government data on producer price inflation, a leading indicator of consumer inflation.
The U.S. is to produce official data on retail sales, the primary indicator of consumer spending, which accounts for the majority of economic activity. In addition, the U.S. is to release data on manufacturing activity in New York state, as well as official data on business inventories.
Tuesday, October 16
The U.S. is to release government data on consumer price inflation and industrial production. The U.S. is also to produce official data on treasury long-term purchases and the capacity utilization rate.
Wednesday, October 17
The ZEW Institute is to publish a report on Swiss economic expectations, a leading indicator of economic health.
Later Wednesday, the U.S. is to publish government data on building permits, an excellent gauge of future construction activity, as well as data on housing starts, a leading indicator of economic health. The U.S. is also to produce official data on crude oil stockpiles.
Thursday, October 18
Switzerland is to release official data on the trade balance, the difference in value between imports and exports.
The U.S. is to publish weekly government data on initial jobless claims, as well as a report on manufacturing activity in Philadelphia, a leading indicator of economic strength.
Friday, October 19
The U.S. is to round up the week with industry data on existing home sales, a leading indicator of economic health.
USD/CHF hit 0.9431 on Wednesday, the pair’s highest since October 1; the pair subsequently consolidated at 0.9334 by close of trade on Friday, 0.41% for the week.
The pair is likely to find support at 0.9295, the low of October 8 and resistance at 0.9431, Wednesday’s high.
The dollar slipped lower against the Swiss franc on Friday, amid speculation that Spain was moving closer to requesting fiscal aid from its euro zone partners following a downgrade by ratings agency Standard & Poor’s.
A bailout request by Madrid would trigger the European Central Bank’s bond purchasing program, aimed at lowering borrowing costs for struggling euro zone states.
Market sentiment was also boosted after official data showed that U.S. consumer sentiment rose to its highest level in five years in October and a separate report showing that producer price inflation rose more-than-forecast in September.
The University of Michigan said that its consumer sentiment index rose to a seasonally adjusted 83.1 from 78.3 in September, the highest level since September 2007.
The data came one day after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits fell by 30,000 to a seasonally adjusted 339,000 in the previous week, compared to expectations for an increase of 1,000.
However, as the figures were released a spokesman for the Labor Department said one large state had not reported additional quarterly figures, accounting for a significant part of the steep decline in claims.
Concerns over the outlook for the global economy continued after International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it called a “slow and bumpy” economic recovery.
In the week ahead, markets will continue to continue to focus on whether Spain will formally request a bailout and if international creditors will extend loans to Greece as the country struggles to meet deficit reduction targets.
Meanwhile, the U.S. is to release a flurry of data, including reports on retail sales, manufacturing activity in New York and Philadelphia, initial jobless claims and housing starts, among others.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 15
Switzerland is to release government data on producer price inflation, a leading indicator of consumer inflation.
The U.S. is to produce official data on retail sales, the primary indicator of consumer spending, which accounts for the majority of economic activity. In addition, the U.S. is to release data on manufacturing activity in New York state, as well as official data on business inventories.
Tuesday, October 16
The U.S. is to release government data on consumer price inflation and industrial production. The U.S. is also to produce official data on treasury long-term purchases and the capacity utilization rate.
Wednesday, October 17
The ZEW Institute is to publish a report on Swiss economic expectations, a leading indicator of economic health.
Later Wednesday, the U.S. is to publish government data on building permits, an excellent gauge of future construction activity, as well as data on housing starts, a leading indicator of economic health. The U.S. is also to produce official data on crude oil stockpiles.
Thursday, October 18
Switzerland is to release official data on the trade balance, the difference in value between imports and exports.
The U.S. is to publish weekly government data on initial jobless claims, as well as a report on manufacturing activity in Philadelphia, a leading indicator of economic strength.
Friday, October 19
The U.S. is to round up the week with industry data on existing home sales, a leading indicator of economic health.