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Forex - USD/CHF weekly outlook: April 22 - 26

Published 04/21/2013, 06:42 AM
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CHF/JPY
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Investing.com - The dollar pushed higher against the Swiss franc on Friday after the Group of 20 nations signaled that they approved of efforts by Japan to bolster growth through aggressive monetary easing steps.

USD/CHF hit session highs of 0.9344, the pair’s highest since April 9, before settling at 0.9340, 0.16% higher for the day and up 0.41% for the week.

The pair is likely to find support at 0.9275, Friday’s low and resistance at 0.9365, the high of April 9.

The dollar gained ground against the Swiss franc on Friday, tracking strong gains against the yen, after the G-20 said Japan's recent policy actions are aimed at beating deflation and not at competitively weakening the yen.

The statement eased concerns that Japan would face criticism after it announced earlier this month that it plans to double the size of its asset purchase program over the next two years.

The franc was sharply higher against the yen on Friday, with CHF/JPY hitting session highs of 106.97, before settling at 106.52, 1.27% higher for the day.

Elsewhere, Swiss National Bank President Thomas Jordan said Friday that the 1.20 per euro exchange rate floor is “indispensable”, adding that it is the only way to avoid a “deflation spiral and a destruction of the economy”.

The franc slipped lower against the euro on Friday, with EUR/CHF easing up 0.14% to settle at 1.2186.

In the week ahead, investors will be awaiting Friday’s U.S. data on first quarter growth amid lingering concerns that the U.S. economic recovery is losing momentum.

Markets will also be closely watching U.K. data on first quarter growth, as well as reports on manufacturing and service sector activity in the euro zone and the outcomes of policy meetings by the BoJ and the Reserve Bank of New Zealand.

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

Monday, April 22

The U.S. is to release private sector data on existing home sales, a leading indicator of demand in the housing market.

Tuesday, April 23

The U.S. is to produce official data on new home sales as well as preliminary data on manufacturing activity.

Wednesday, April 24

The U.S. is to release government data on durable goods orders, a leading indicator of production, as well as data on crude oil inventories.

Thursday, April 25

The U.S. is to produce the weekly government report on initial jobless claims.

Friday, April 26

The U.S. is to round up the week with preliminary data on first quarter growth, the broadest indicator of economic activity and the leading measure of the economy’s health.

The U.S. is also to release revised data from the University of Michigan on consumer sentiment and inflation expectations.





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