Investing.com - The U.S. dollar ended the week sharply lower
against the Swiss franc on Friday, as optimism over signs of a
recovery in the euro zone dampened investor demand for safe-haven
USD/CHF hit 0.9109 on Friday, the pair's lowest since January 2;
the pair subsequently consolidated at 0.9132 by close of trade,
1.2% lower for the week.
The pair is likely to find support at 0.9082, the low of December
20 and a seven-month low and resistance at 0.9267, Thursday's high.
The dollar fell more than 1% against the Swiss franc on Thursday
after the European Central Bank kept interest rates unchanged at
0.75% and President Mario Draghi said a gradual economic recovery
would begin this year.
Some investors had expected the ECB to hint a possible rate cuts in
the coming months going into Thursday's policy meeting.
The single currency hit its highest level against the Swiss franc
in over a year on Friday, with EUR/CHF up 0.47% to settle at
On Monday, data from the Swiss National Bank showed that foreign
currency reserves declined to CHF427.17 billion in December from
CHF427.37 billion the previous month, down for the third successive
The data is closely watched for indications of how much the bank is
spending to defend the 1.20 per euro minimum exchange rate floor
put in place in September 2011.
The dollar was little changed on Friday after official data showed
that the U.S. trade deficit widened unexpectedly in November,
growing to USD48.7 billion, the biggest deficit since April.
Imports climbed 3.8% to USD231.3 billion, while exports rose 1% to
In the week ahead, investors will be anticipating a speech by
Federal Reserve Chairman Ben Bernanke on monetary policy and the
recovery from the global financial crisis on Monday, as well as
Tuesday's data on U.S. retail sales for December.
Switzerland is also slated to release government data on retail
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
Monday, January 14
In the U.S., Fed Chairman Ben Bernanke is to speak at the
University of Michigan; his comments will be closely watched for
any indications on the future possible direction of monetary
Tuesday, January 15
The U.S. is to publish government data on retail sales, the leading
indicator of consumer spending, which comprises the majority of
economic activity, as well as official data on producer price
inflation. In addition, the U.S. is to release data on
manufacturing activity in New York state and a report on business
Wednesday, January 16
Switzerland is to release official data on retail sales.
Later Wednesday, the U.S. is to produce government data on consumer
inflation, in addition to data on industrial production and the
capacity utilization rate. The country is also to publish official
data on crude oil stockpiles, while the Fed is to publish its Beige
Book, which looks at current economic conditions.
Thursday, January 17
Switzerland is to publish government data on producer price
inflation, a leading indicator of consumer inflation.
Elsewhere, the U.S. was to produce official data on building
permits, a leading indicator of future construction activity, as
well as data on housing starts. The U.S. was also to release the
weekly government report on initial jobless claims and data on
manufacturing activity in Philadelphia.
Friday, January 18
The U.S. is to round up the week with preliminary data from the
University of Michigan on consumer sentiment, a leading indicator
of consumer spending.
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