Investing.com - The U.S. dollar ended Friday's session little
changed against the Swiss franc in holiday-thinned trade, as
negotiations between U.S. lawmakers in Washington aimed at
resolving the looming fiscal cliff crisis continued to influence
market sentiment.
USD/CHF hit 0.9182 on Friday, the pair's highest since December 18;
the pair subsequently consolidated at 0.9136 by close of trade,
0.41% lower for the week.
The pair was likely to find support at 0.9094, Thursday's low and
resistance at 0.9182, Friday's high.
Trading volumes were thin as many investors already closed books to
lock in profit before the end of the year, reducing liquidity in
the market and increasing the volatility.
Market players remained focused on developments surrounding the
fiscal cliff in the U.S., approximately USD600 billion in automatic
tax hikes and spending cuts due to come into effect on January 1
unless Democrats and Republicans agree how to cut the deficit.
U.S. President Barack Obama met with congressional leaders at the
White House Friday afternoon, but both sides failed to reach an
agreement ahead of the looming year-end deadline.
The gathering included House Speaker John Boehner and Senate
Minority Leader Mitch McConnell, both Republicans, as well as
Senate Majority Leader Harry Reid and House Minority Leader Nancy
Pelosi, both Democrats.
The House of Representatives is due to return to Washington on
Sunday. The Senate will be in Sunday as well to try to reach a
last-ditch agreement.
Without a deal, the U.S. could fall back into recession and drag
much of the world down with it.
On the data front, the National Association of Realtors said Friday
that U.S. pending home sales rose 1.7% in November, above
expectations for a 1% increase.
A separate report showed that Chicago's purchasing managers' index
rose to 51.6 in December, from a reading of 50.4 the previous
month, beating expectations for a rise to 51.0.
In the euro zone, Italy saw borrowing costs edge higher at an
auction of five- and- ten-year government bonds, amid uncertainty
ahead of national elections in February.
Rome sold EUR3 billion of 10-year bonds at an average yield of
4.48%, up from 4.45% last month. The country also auctioned EUR2.87
billion of five-year debt at a yield of 3.26%, compared to 3.23% a
month earlier.
Adding to investors' jitters, revised data showed that France's
economy grew by a meager 0.1% in the third quarter, down from an
initial estimate for growth of 0.2%. The euro zone's second largest
economy shrank 0.1% in the second quarter, unchanged from the
previous estimate.
In the week ahead trading volumes are expected to remain light,
with many markets closed for the New Year's holiday.
Meanwhile, U.S. is to publish its closely-watched monthly jobs
report on Friday, as investors attempt to gauge the strength of the
country's economic recovery.
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 Monday, as there are no relevant events for that
day.
Tuesday, January 1
Markets in the U.S. and Switzerland will remain closed in
observance of New Year's Day.
Wednesday, January 2
Markets in Switzerland will remain closed for a bank holiday.
In the U.S., the Institute of Supply Management is to produce a
report on manufacturing growth, a leading indicator of economic
health.
Thursday, January 3
Switzerland is to publish its KOF economic barometer, designed to
predict the future direction of the economy, as well as a report on
manufacturing activity.
Later Thursday, the U.S. is to release a report on ADP nonfarm
payrolls, as well as its weekly government report on initial
jobless claims. In addition, the Federal Reserve is to publish the
minutes of its most recent policy-setting meeting.
Friday, January 4
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.
The country is also to release official data on factory orders,
crude oil stockpiles and natural gas inventories. In addition, the
ISM is to produce a report on service sector activity.
Investing.com -
Investing.com
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.
Read more News on Investing.com or Follow us on Twitter at @
Newsinvesting