Investing.com - The dollar eased back from a two-week high against the Swiss franc on Friday, after better-than-forecast U.S. data on third quarter growth, but safe haven demand was supported as concerns over the euro zone weighed on market sentiment.
USD/CHF hit 0.9386 on Friday, the pair’s highest since October 11; the pair subsequently consolidated at 0.9348 by close of trade, up 0.68% for the week.
The pair is likely to find support at 0.9250, the low of October 22 and resistance at 0.9386, Friday’s high.
The Commerce Department reported that the U.S. economy grew by a better-than-forecast 2% in the three months to September, on the back of stronger consumer spending, after expanding by 1.3% in the preceding quarter. Economists had predicted growth of 1.9%.
Separately, the final reading of the University of Michigan’s consumer confidence index ticked down to 82.6 for October, from the initial reading of 83.1, which was the highest since September 2007.
Earlier in the week, the Federal Reserve said the U.S. economy was improving moderately, but said job growth has been slow and the unemployment rate remains elevated.
In its rate statement on Wednesday, the central bank also said it planned to keep its benchmark short-term rate close to zero through mid-2015.
Investors remained jittery amid ongoing worries over the fiscal and economic outlook for Spain after official data showed that the country’s unemployment rate jumped to a record 25.02% in the third quarter.
Markets continued to await any indication that Spain is moving closer to formally requesting a bailout from its euro zone partners and activating the European Central Bank’s bond purchasing plan.
Meanwhile, concerns over political uncertainty in Greece and doubts over whether the country will meet austerity targets weighed.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls data after the unemployment rate unexpectedly fell to 7.8% in September from 8.1% the previous month.
In addition, investors will be awaiting any indication that Spain is growing closer to formally requesting a bailout.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 29
The U.S. is to release government data on personal income, personal spending and core consumer inflation.
Tuesday, October 30
The U.S. is to release data on consumer confidence, a leading indicator of economic health, as well as industry data on house price inflation, an important indicator of demand in the housing sector.
Wednesday, October 31
In the U.S., payroll processing firm ADP is to release a report on nonfarm payrolls, a leading indicator of private sector job creation. The U.S. is also to publish official data on manufacturing activity in Chicago, as well as data on employment costs and crude oil stockpiles.
Thursday, November 1
Switzerland is to release official data on retail sales, the leading measure of consumer spending, which accounts for the majority of overall economic activity, as well as a report on manufacturing activity.
The U.S. is to release private sector data on nonfarm payrolls, an important indicator of job creation. The U.S. is also to publish its weekly government report on initial jobless claims, as well as official data on nonfarm productivity and labor costs, important inflationary indicators.
In addition, the Institute of Supply Management is to publish data on U.S. manufacturing activity.
Friday, November 2
The U.S. is to round up the week with the closely watched government report on nonfarm payrolls, a leading indicator of job creation in the economy, as well as data on the unemployment rate.
The U.S. is also to publish official data on average earnings and factory orders.
USD/CHF hit 0.9386 on Friday, the pair’s highest since October 11; the pair subsequently consolidated at 0.9348 by close of trade, up 0.68% for the week.
The pair is likely to find support at 0.9250, the low of October 22 and resistance at 0.9386, Friday’s high.
The Commerce Department reported that the U.S. economy grew by a better-than-forecast 2% in the three months to September, on the back of stronger consumer spending, after expanding by 1.3% in the preceding quarter. Economists had predicted growth of 1.9%.
Separately, the final reading of the University of Michigan’s consumer confidence index ticked down to 82.6 for October, from the initial reading of 83.1, which was the highest since September 2007.
Earlier in the week, the Federal Reserve said the U.S. economy was improving moderately, but said job growth has been slow and the unemployment rate remains elevated.
In its rate statement on Wednesday, the central bank also said it planned to keep its benchmark short-term rate close to zero through mid-2015.
Investors remained jittery amid ongoing worries over the fiscal and economic outlook for Spain after official data showed that the country’s unemployment rate jumped to a record 25.02% in the third quarter.
Markets continued to await any indication that Spain is moving closer to formally requesting a bailout from its euro zone partners and activating the European Central Bank’s bond purchasing plan.
Meanwhile, concerns over political uncertainty in Greece and doubts over whether the country will meet austerity targets weighed.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls data after the unemployment rate unexpectedly fell to 7.8% in September from 8.1% the previous month.
In addition, investors will be awaiting any indication that Spain is growing closer to formally requesting a bailout.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, October 29
The U.S. is to release government data on personal income, personal spending and core consumer inflation.
Tuesday, October 30
The U.S. is to release data on consumer confidence, a leading indicator of economic health, as well as industry data on house price inflation, an important indicator of demand in the housing sector.
Wednesday, October 31
In the U.S., payroll processing firm ADP is to release a report on nonfarm payrolls, a leading indicator of private sector job creation. The U.S. is also to publish official data on manufacturing activity in Chicago, as well as data on employment costs and crude oil stockpiles.
Thursday, November 1
Switzerland is to release official data on retail sales, the leading measure of consumer spending, which accounts for the majority of overall economic activity, as well as a report on manufacturing activity.
The U.S. is to release private sector data on nonfarm payrolls, an important indicator of job creation. The U.S. is also to publish its weekly government report on initial jobless claims, as well as official data on nonfarm productivity and labor costs, important inflationary indicators.
In addition, the Institute of Supply Management is to publish data on U.S. manufacturing activity.
Friday, November 2
The U.S. is to round up the week with the closely watched government report on nonfarm payrolls, a leading indicator of job creation in the economy, as well as data on the unemployment rate.
The U.S. is also to publish official data on average earnings and factory orders.