Forex - USD/CHF weekly outlook: October 18-22

Published 10/17/2010, 06:44 AM
USD/CHF
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Investing.com – Last week saw the U.S. dollar fall to a new record low against the Swiss franc, amid expectations that the Federal Reserve would announce a fresh round of monetary easing measures after their next meeting in November.

USD/CHF hit 0.9462 on Thursday, a record low; the pair subsequently consolidated at 0.9586 by close of trade on Friday, shedding 0.17% over the week.

The pair is likely to find support at 0.9462, Thursday’s low and resistance at 0.9697, the high of October 8.

The dollar rebounded on Friday, after Federal Reserve Chairman Ben Bernanke appeared circumspect about further easing. Bernanke said there was a case for further monetary easing, given ongoing high unemployment and low inflation.

But he said officials "will take account of the potential costs and risks" of pursuing unconventional policies, and anything that is done will be "contingent on incoming information about the economic outlook and financial conditions."

Next week, the U.S. is to release key weekly data on initial jobless claims, as well as key data on building permits, housing starts, manufacturing activity and foreign investment. Meanwhile, the Federal Reserve is to publish its Beige Book.

Meanwhile, Switzerland is to publish data on the country’s trade balance and consumer sentiment.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CHF.

Monday, October 18


The U.S. will being the week by publishing official data on the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreigners. The country is also to release official data on the capacity utilization rate as well as data on industrial production, a leading indicator of economic health.

Tuesday, October 19


The U.S. is to publish official data on building permits and housing starts, both leading indicators of health in the housing sector.

Wednesday, October 20


In the U.S., the Federal Reserve is to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate. The U.S. is also set to produce data on crude oil inventories.

Thursday, October 21


The U.S. is to release key weekly data on initial jobless claims, while the Federal Reserve Bank of Philadelphia is due to release a report on the city’s manufacturing sector. The country is also due to publish an index of leading economic indicators, designed to predict the future direction of the economy.

Also Thursday, the President of the Federal Reserve Bank of St Louis, James Bullard is to speak at a public engagement. His comments will be closely watched for any clues to the future direction of monetary policy.

In Switzerland, the ZEW Centre for Economic Research will publish data on Swiss economic expectations, a leading indicator of economic health. The country is also to release official data on its trade balance, the difference in value between imported and exported goods during the month.

Friday, October 22


The President of the Federal Reserve Bank of Kansas, Thomas Hoenig is to speak at a public engagement. His comments will be closely watched for any clues to the future direction of monetary policy.

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