Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Forex - USD/CHF weekly outlook: April 26-30

Published 04/25/2010, 07:57 AM
USD/CHF
-
Investing.com – The Swiss franc tumbled to a 7-week low against the U.S. dollar last week, on signs that the U.S. economic recovery was gaining pace and amid mounting fears over Greece's debt crisis.

USD/CHF hit 1.085 on Friday, the pair's highest since March 2; it subsequently pulled back to reach 1.0721 at the close of trade. On a weekly basis, USD/CHF gained 0.9%.

The pair is likely to find resistance at 1.0889, the high of March 2, and support at 1.0435, the low of April 1.

Further developments in talks next week over Greece's request for an EU-IMF rescue package are likely to impact the Swissy, due to Switzerland's economic dependence of the euro zone for trade.

Also next week, the chairman of Switzerland's central bank, Philipp Hildebrand, is due to speak at a public engagement. In addition, a key report on the country's overall economic health is scheduled to be released, as is data on Swiss consumption.

Meanwhile, the U.S. Federal Reserve is set to make a key interest rate decision, which will be accompanied by a closely watched statement. The chairman of Fed, Ben Bernanke, is also set to testify in Washington. Also next week, important economic data are due to be published in the United States on unemployment claims, consumer confidence and GDP.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CHF. The guide begins on Tuesday, since there are no such events until then.

Tuesday, April 27

Financial services group UBS will release its Swiss consumption indicator, a composite index based on five consumer-based economic indicators, including consumer confidence, consumer spending, tourism, new car sales, and retail activity.

Research groups Standard & Poor's and Case-Shiller will publish a U.S. house price index, which measures the change in the selling price of single-family homes in 20 metropolitan areas.

Later in the day, another research group, the Conference Board, will publish a closely watched index measuring U.S. consumer confidence. Bernanke, meanwhile, is set to testify before the before the National Commission on Fiscal Responsibility and Reform in Washington D.C. Traders are likely to scrutinize his comments for clues to future shifts in monetary policy.

Wednesday, April 28

The Fed will announce its decision on its benchmark interest rate and release a statement from the Federal Open Market Committee, within which the U.S. economic outlook will be discussed.

Thursday, April 29

The U.S. Labor Department will publish data on initial jobless claims, an important signal of overall economic health. Carney, meanwhile, is set to testify in Ottawa before the Senate Committee on Banking, Trade and Commerce.

Friday, April 30

The Swiss National Bank chairman, Hildebrand, is due to speak at an event in Bern. The KOF research institute will then release its Swiss Economic Barometer, a composite index based on 12 economic indicators related to banking confidence, production, new orders, consumer confidence and housing.

The U.S., meanwhile, will publish a preliminary estimate of its quarterly GDP and of the change in the price of all goods and services included in GDP. A survey of purchasing managers in the Chicago area is also due to be published, as is a University of Michigan report on U.S. consumer sentiment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.