Investing.com - The dollar was sharply lower against the Swiss
franc on Friday as hopes for a deal on an alternative bailout
agreement for Cyprus boosted market sentiment, dampening dollar
USD/CHF hit a session low of 0.9398, the pair's lowest since March
14, before settling at 0.9404, down 0.64% for the day and 0.74%
lower for the week.
The pair is likely to find support at 0.9378, the low of March 14
and resistance at 0.9473, Friday's high.
Market sentiment was boosted as political leaders in Cyprus
prepared to pass legislation to restructure the country's banking
sector and impose capital controls.
The European Central Bank said Thursday that it will cut off
liquidity to Cypriot banks on Monday if an agreement with the
European Union and the International Monetary Fund on an
alternative bailout solution is not in place.
The EU and the IMF have offered a EUR10 billion bailout loan to
Cyprus, but insisted that the country find a way to raise EUR5.8
billion in exchange for financial aid.
A previous agreement that included a levy on deposits in Cypriot
banks was rejected by the country's parliament on Tuesday.
The euro was little changed against the Swissy on Friday, with
EUR/CHF rising to a session high of 1.2235, before settling at
1.2215, 0.04% higher for the day and down 0.48% for the week.
On Wednesday, the Federal Reserve announced that it will leave
monetary policy unchanged in spite of recent signs that the U.S.
recovery is gaining traction, citing concerns over high
unemployment levels and risks from tax increases and federal
government spending cuts.
Speaking at the end of the bank's two-day policy meeting, Fed
Chairman Ben Bernanke said the central bank may gradually wind down
the pace of its bond buying, but only after the labor market shows
signs of being on a more stable footing.
In the week ahead investors will be closely monitoring developments
in Cyprus as a failure to reach a deal could see the country exit
the euro zone.
Market participants will also be watching German data on retail
sales on Tuesday amid concerns over the economic outlook for the
euro zone and an Italian government debt auction on Thursday.
The U.S. is to release a flurry of data including reports on
durable goods orders, home sales and consumer confidence.
Ahead of the coming week, Investing.com has compiled a list of
these and other significant events likely to affect the markets.
Monday, March 25
Federal Reserve Chairman Ben Bernanke is to speak at an event in
London; his comments will be closely watched for any indication of
the possible future direction of monetary policy.
Tuesday, March 26
The U.S. is to release a flurry of economic data with government
reports on durable goods orders and new home sales as well as a
report on consumer confidence.
Wednesday, March 27
In Switzerland the KOF Economic Research Agency is to publish its
economic barometer, designed to predict the medium term direction
of the economy.
The U.S. is to produce industry data in pending home sales and a
government report on crude oil stockpiles.
Thursday, March 28
The U.S. is to release the weekly government report on initial
jobless claims and revised data on fourth quarter economic growth.
Friday, March 29
Markets in Switzerland are to remain closed in observance of Good
The U.S. is to round up the week with official data on personal
spending and expenditure and revised data form the University of
Michigan on consumer sentiment and inflation expectations.
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