Investing.com - The U.S. dollar ended the week little changed close to six-week lows against the Swiss franc on Friday, as hopes for an agreement to avoid the U.S. fiscal cliff continued to underpin market sentiment.
USD/CHF hit 0.9244 on Friday, the pair’s lowest since October 19; the pair subsequently consolidated at 0.9276 by close of trade, 0.07% lower for the week.
The pair is likely to find support at 0.9238, the low of October 19 and resistance at 0.9324, the high of November 27.
Investors remained focused on negotiations between Democrats and Republicans to avoid a set of spending cuts and tax increases due to come into effect on January 1 if U.S. lawmakers cannot reach an agreement on reducing the budget deficit.
House Speaker John Boehner said Thursday that there has been little progress in talks but Senate Majority Leader Harry Reid said he thought Congress could finalize a deal this year.
The dollar shrugged off official data showing that U.S. consumer spending fell 0.2% in October, as much of the decline was attributed to disruptions caused by Hurricane Sandy.
Market sentiment also found support after Germany’s parliament approved a new aid package for Greece by a large majority.
However, concerns over the economic outlook for the euro zone continued to weigh after data on Friday showed that German retail sales fell sharply in October, while a separate report showed that the unemployment rate in the euro zone hit a record high in October.
Earlier in the week, Swiss National Bank Chairman Thomas Jordan said the Swiss franc is still highly valued against the euro and added that the central bank would need to defend its 1.20 per euro minimum exchange rate for some time to come.
Jordan stressed that the exchange rate floor put in place 15 months ago was a response to "extreme circumstances and isn't designed as a measure to fine-tune the economy."
Data on Thursday showed that the Swiss economy expanded by 0.6% in the third quarter, after a 0.1% contraction in the three months to June.
In the coming week, investors will be looking ahead to Friday’s highly anticipated data on U.S. nonfarm payrolls, as investors attempt to gauge the strength of the country’s economic recovery.
Policy decisions by the European Central Bank and the Bank of England will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday, as there are no relevant events on this day.
Monday, December 3
Switzerland is to publish official data on retail sales, the primary indicator of consumer spending, which accounts for the majority of economic activity. The country is also to release a separate report on manufacturing activity.
Later Monday, the Institute of Supply Management is to produce a report on manufacturing growth in the U.S.
Wednesday, December 5
The U.S. is to release a report on ADP nonfarm payrolls, as well as official data on factory orders and crude oil stockpiles. In addition, the ISM is to produce a report on service sector activity.
Thursday, December 6
Switzerland is to produce government data on consumer price inflation, which accounts for the majority of overall inflation.
The U.S. is to publish the weekly government report on initial jobless claims.
Friday, December 7
The SNB is to release data on foreign currency reserves, which gives an insight into the bank’s currency market operations.
The U.S. is to round up the week with official data on nonfarm payrolls, the foremost gauge of job creation, as well as data on the overall unemployment rate. In addition, the University of Michigan is to release preliminary data on consumer sentiment, a leading indicator of economic health.
USD/CHF hit 0.9244 on Friday, the pair’s lowest since October 19; the pair subsequently consolidated at 0.9276 by close of trade, 0.07% lower for the week.
The pair is likely to find support at 0.9238, the low of October 19 and resistance at 0.9324, the high of November 27.
Investors remained focused on negotiations between Democrats and Republicans to avoid a set of spending cuts and tax increases due to come into effect on January 1 if U.S. lawmakers cannot reach an agreement on reducing the budget deficit.
House Speaker John Boehner said Thursday that there has been little progress in talks but Senate Majority Leader Harry Reid said he thought Congress could finalize a deal this year.
The dollar shrugged off official data showing that U.S. consumer spending fell 0.2% in October, as much of the decline was attributed to disruptions caused by Hurricane Sandy.
Market sentiment also found support after Germany’s parliament approved a new aid package for Greece by a large majority.
However, concerns over the economic outlook for the euro zone continued to weigh after data on Friday showed that German retail sales fell sharply in October, while a separate report showed that the unemployment rate in the euro zone hit a record high in October.
Earlier in the week, Swiss National Bank Chairman Thomas Jordan said the Swiss franc is still highly valued against the euro and added that the central bank would need to defend its 1.20 per euro minimum exchange rate for some time to come.
Jordan stressed that the exchange rate floor put in place 15 months ago was a response to "extreme circumstances and isn't designed as a measure to fine-tune the economy."
Data on Thursday showed that the Swiss economy expanded by 0.6% in the third quarter, after a 0.1% contraction in the three months to June.
In the coming week, investors will be looking ahead to Friday’s highly anticipated data on U.S. nonfarm payrolls, as investors attempt to gauge the strength of the country’s economic recovery.
Policy decisions by the European Central Bank and the Bank of England will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday, as there are no relevant events on this day.
Monday, December 3
Switzerland is to publish official data on retail sales, the primary indicator of consumer spending, which accounts for the majority of economic activity. The country is also to release a separate report on manufacturing activity.
Later Monday, the Institute of Supply Management is to produce a report on manufacturing growth in the U.S.
Wednesday, December 5
The U.S. is to release a report on ADP nonfarm payrolls, as well as official data on factory orders and crude oil stockpiles. In addition, the ISM is to produce a report on service sector activity.
Thursday, December 6
Switzerland is to produce government data on consumer price inflation, which accounts for the majority of overall inflation.
The U.S. is to publish the weekly government report on initial jobless claims.
Friday, December 7
The SNB is to release data on foreign currency reserves, which gives an insight into the bank’s currency market operations.
The U.S. is to round up the week with official data on nonfarm payrolls, the foremost gauge of job creation, as well as data on the overall unemployment rate. In addition, the University of Michigan is to release preliminary data on consumer sentiment, a leading indicator of economic health.