Investing.com - The broadly stronger dollar ended the week
higher against the Swiss franc on Friday after the Federal Reserve
indicated that it may start to unwind its asset purchase program
later this year.
USD/CHF hit highs of 0.9367 on Friday; the pair's highest since
June 10, before settling at 0.9340 at the close of trade, up 0.77%
for the day and 1.39% higher for the week.
The pair is likely to find support at 0.9240, Friday's low and
resistance at 0.9417, the high of June 10.
The dollar rallied after Fed Chairman Ben Bernanke said Wednesday
that the bank could begin slowing its USD85 billion-a-month bond
purchasing program by the end of 2013 and wind it down completely
by the middle of 2014 if the economy picks up as the central bank
The bank said it expects the U.S. economy to grow between 2.3% and
2.6% in 2013. The Fed also said it expects the unemployment rate to
fall to between 6.5% and 6.8% by the end of 2014 and inflation to
edge closer to its 2% target.
On Thursday, the Swiss National Bank kept monetary policy unchanged
following its policy setting meeting and said the Swiss franc
The SNB left its benchmark interest rate unchanged at zero, in line
The bank also maintained the minimum exchange rate floor at 1.20
per euro saying the measure is "important in order to avoid an
undesirable tightening of monetary conditions."
The central bank reiterated that it would defend the exchange rate
floor by buying foreign currency in unlimited quantities in
The SNB said it still anticipates growth in a range of 1% to 1.5%
in 2013 but warned that risks to the economy remained high, saying
"tensions can reappear at any moment on global financial markets."
In the week ahead, investors will be closely watching U.S. data on
durable goods orders, jobless claims and consumer confidence for
signs that the economic recovery is on track.
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 on this day.
Tuesday, June 25
The U.S. is to publish official data on durable goods orders, a
leading indicator of production, as well as closely watched reports
on consumer confidence and new home sales.
Wednesday, June 26
The U.S. is to release revised data on first quarter economic
growth as well as government data on crude oil stockpiles.
Thursday, June 27
The U.S. is to release the weekly government report on initial
jobless claims along with data on personal income and expenditure,
which is to be followed by private sector data on pending home
Friday, June 28
Switzerland is to publish its KOF economic barometer, an important
indicator of economic health.
The U.S. is to round up the week with a report on manufacturing
activity in Chicago and revised data from the University of
Michigan on consumer sentiment.
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