Investing.com - The U.S. dollar ended the week lower against the Swiss franc on Friday, as growing expectations for imminent stimulus measures by the Federal Reserve sent the greenback broadly lower.
USD/CHF hit 0.9501 on Friday, the pair’s lowest since July 2; the pair subsequently consolidated at 0.9544 by close of trade on Friday, falling 0.18% over the week.
The pair is likely to find support at 0.9462, the low of June 29 and resistance at 0.9634, the high of August 28.
The greenback dropped to a two-month low against the Swissie on Friday, after Federal Reserve Chairman Ben Bernanke said the persistently high rate of unemployment was a “grave concern”.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, Bernanke reiterated that the central bank was ready to provide additional policy accommodation as needed to shore up growth.
Official data on Wednesday showed that the U.S. economy expanded at a seasonally adjusted annual rate of 1.7% in the three months to June, slightly higher than the preliminary estimate of 1.5%, but remained below the 2-2.5% rate required every quarter to hold the unemployment rate steady.
Bernanke downplayed the risks of quantitative easing and said the program had been effective in providing “meaningful support" to the recovery.
Meanwhile, sentiment remained supported by expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.
On Thursday, Italy saw borrowing costs ease at an auction of five and 10-year bonds, reflecting renewed optimism that European leaders are making progress in tackling the region’s debt crisis.
In Switzerland, the KOF Economic Research Agency said earlier in the week that its index of 12 leading indicators improved to 1.57 in August from July’s reading of 1.41, which was revised from a previously reported 1.43.
Analysts had expected the index to improve to 1.50 in August.
In the week ahead, markets will be focusing on the ECB’s post-policy meeting press conference on Thursday, as investors await more details about the size and scope of the bank’s bond purchasing program from President Mario Draghi.
The U.S. is to release its monthly report on non-farm payrolls on Friday, which will allow investors to gauge the strength of the faltering labor market.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, September 3
Switzerland is to release official data on retail sales, followed by the SVME purchasing managers’ index.
Markets in the U.S. are to remain closed for the Labor Day holiday.
Tuesday, September 4
Switzerland is to publish official data on second quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy's health.
The U.S. is to publish a report by the Institute for Supply Management on manufacturing PMI.
Wednesday, September 5
Switzerland is to produce official data on consumer price inflation, which accounts for a majority of overall inflation.
Later in the day, the U.S. is to produce revised data on nonfarm productivity.
Thursday, September 6
The U.S. is to produce industry data on non-farm employment change, followed by weekly government data on unemployment claims. The country is also to release a report by the Institute for Supply Management on non-manufacturing activity, as well as government data on crude oil stockpiles.
Friday, September 7
The Swiss National Bank is to publish a report on foreign currency reserves.
The U.S. is to round up the week with closely watched official data on non-farm payrolls and the unemployment rate, as well as a report on average hourly earnings.
USD/CHF hit 0.9501 on Friday, the pair’s lowest since July 2; the pair subsequently consolidated at 0.9544 by close of trade on Friday, falling 0.18% over the week.
The pair is likely to find support at 0.9462, the low of June 29 and resistance at 0.9634, the high of August 28.
The greenback dropped to a two-month low against the Swissie on Friday, after Federal Reserve Chairman Ben Bernanke said the persistently high rate of unemployment was a “grave concern”.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, Bernanke reiterated that the central bank was ready to provide additional policy accommodation as needed to shore up growth.
Official data on Wednesday showed that the U.S. economy expanded at a seasonally adjusted annual rate of 1.7% in the three months to June, slightly higher than the preliminary estimate of 1.5%, but remained below the 2-2.5% rate required every quarter to hold the unemployment rate steady.
Bernanke downplayed the risks of quantitative easing and said the program had been effective in providing “meaningful support" to the recovery.
Meanwhile, sentiment remained supported by expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.
On Thursday, Italy saw borrowing costs ease at an auction of five and 10-year bonds, reflecting renewed optimism that European leaders are making progress in tackling the region’s debt crisis.
In Switzerland, the KOF Economic Research Agency said earlier in the week that its index of 12 leading indicators improved to 1.57 in August from July’s reading of 1.41, which was revised from a previously reported 1.43.
Analysts had expected the index to improve to 1.50 in August.
In the week ahead, markets will be focusing on the ECB’s post-policy meeting press conference on Thursday, as investors await more details about the size and scope of the bank’s bond purchasing program from President Mario Draghi.
The U.S. is to release its monthly report on non-farm payrolls on Friday, which will allow investors to gauge the strength of the faltering labor market.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, September 3
Switzerland is to release official data on retail sales, followed by the SVME purchasing managers’ index.
Markets in the U.S. are to remain closed for the Labor Day holiday.
Tuesday, September 4
Switzerland is to publish official data on second quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy's health.
The U.S. is to publish a report by the Institute for Supply Management on manufacturing PMI.
Wednesday, September 5
Switzerland is to produce official data on consumer price inflation, which accounts for a majority of overall inflation.
Later in the day, the U.S. is to produce revised data on nonfarm productivity.
Thursday, September 6
The U.S. is to produce industry data on non-farm employment change, followed by weekly government data on unemployment claims. The country is also to release a report by the Institute for Supply Management on non-manufacturing activity, as well as government data on crude oil stockpiles.
Friday, September 7
The Swiss National Bank is to publish a report on foreign currency reserves.
The U.S. is to round up the week with closely watched official data on non-farm payrolls and the unemployment rate, as well as a report on average hourly earnings.