Forex - USD/CHF weekly outlook: April 29 - May 3


Shutterstock photo - The dollar was lower against the Swiss franc on Friday after official data showed that the U.S. economy grew less-than-forecast in the first quarter.

USD/CHF hit session lows of 0.9402, the pair's lowest since Tuesday, before settling at 0.9425, down 0.25% for the day but still 0.84% higher for the week.

The pair is likely to find support at 0.9402, Friday's low and resistance at 0.9483, Friday's high.

The dollar weakened after the Commerce Department said U.S. gross domestic product expanded by 2.5% in the three months to March, missing expectations for growth of 3.0%.

The disappointing data added to expectations that the Federal Reserve will continue its monetary easing program, amid lingering concerns over the outlook for the U.S. economic recovery.

Meanwhile, Swiss National Bank President Thomas Jordan warned Friday that the value of the Swiss franc remained elevated and that the risk of a sudden appreciation had still not been averted.

Jordan reiterated that the1.20 per euro exchange rate floor imposed by the SNB in September 2011 was still an important instrument to avoid an undesired tightening of monetary policy conditions in Switzerland.

The SNB head said the bank expects a gradual recovery of the global economy this year, with domestic growth of 1% to 1.5%.

"Uncertainties, however, remain high," he cautioned. "Given the fragile international environment, we still see significant downside risks for the Swiss economy."

EUR/CHF hit session lows of 1.2250 on Friday, before settling at 1.2277, slipping 0.11% for the day.

The single currency looked likely to remain under pressure ahead of the upcoming European Central Bank policy meeting as speculation over a rate cut weighed.

In the week ahead, investors will be awaiting the outcomes of policy meetings by the Federal Reserve and the ECB, as well as Friday's closely watched report on U.S. nonfarm payrolls.

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

Monday, April 29

The U.S. is to produce official data on personal income and expenditure, as well as private sector data on pending home sales, a leading economic indicator.

Tuesday, April 30

The U.S. is to release data on consumer confidence, a report on manufacturing activity in Chicago and private sector data on house price inflation.

Wednesday, May 1

The market in Switzerland is to remain closed for the Labor Day holiday.

The U.S. is to release the ADP nonfarm payrolls report on private sector job creation as well as government data on crude oil stockpiles. In addition, the Institute of Supply Management is release data on U.S. manufacturing activity, a leading economic indicator.

In addition, the Federal Reserve is to announce its benchmark interest rate. The announcement is to be accompanied by the bank's monetary policy statement, which contains valuable insights into economic conditions from the bank's perspective.

Thursday, May 2

Switzerland is to publish its SVME PMI, a leading economic indicator.

The U.S. is to publish the weekly government report on initial jobless claims as well as official data on the trade balance.

Friday, May 3

The U.S. is to round up the week with government data on nonfarm payrolls and the unemployment rate as well as data on average hourly earnings and factory orders. In addition, the ISM is release data on U.S. service sector activity, a leading economic indicator. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
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This article appears in: Investing , Forex and Currencies

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