Investing.com - The dollar slid lower against the Swiss franc on Friday as disappointing U.S. economic reports on personal spending and consumer sentiment weighed.
USD/CHF touched lows of 0.8934, before easing back to 0.8952 at the close of trade, down 0.30%.
The pair was likely to find support at 0.8800 and resistance at 0.8989, last Wednesday’s high and a more than three-month high.
The dollar eased after data showed that U.S. consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.
Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.
The dollar had strengthened broadly against the other major currencies earlier in the week as the euro tumbled to more than three-month lows amid mounting expectations for monetary easing by the European Central Bank.
Data on Friday showing that the annual rate of inflation in Italy and Spain slowed in May underlined expectations that the ECB will take steps to tackle low consumer price growth, which its threatening the fragile recovery in the euro zone.
The US Dollar Index, which tracks the dollar against six other major currencies, traded softer on Friday and was last down 0.11% at 80.44. Earlier in the week, the index rose to highs of 80.63, the most since early April.
In the week ahead, investors will be looking to Friday’s U.S. nonfarm payrolls report for May for further indications on the strength of the labor market, while Tuesday’s euro zone inflation report will also be in focus, ahead of the ECB policy meeting and press conference on Thursday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, June 2
Switzerland is to publish its SVME index.
Later Monday, the Institute of Supply Management is to publish a report on U.S. manufacturing activity.
Tuesday, June 3
The U.S. is to produce data on factory orders.
Wednesday, June 4
The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to publish data on the trade balance.
The ISM is to publish a report on U.S. service sector activity.
Thursday, June 5
The ECB is to announce its benchmark interest rate. The announcement is to be followed by a press conference with President Mario Draghi.
The U.S. is to publish the weekly report on initial jobless claims.
Friday, June 6
The Swiss National Bank is to publish data on its foreign currency reserves. This data is closely scrutinized for indications of the size of the bank’s operations in currency markets.Switzerland is also to release data on consumer price inflation.
The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.