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Forex - USD/CHF weekly outlook: May 20 - 24
ForexMay 19, 2013 06:36AM ET
Investing.com - The dollar rallied to nine-month highs against the Swiss franc on Friday after data showed that U.S. consumer sentiment rose to its highest in almost six years in May.
hit 0.9762, the pair’s highest since August 20, before paring back gains slightly to settle at 0.9724, 0.79% higher for the day and up 1.65% for the day.
The pair is likely to find support at 0.9635, Friday’s low and resistance at 0.9762, Friday’s high.
The University of Michigan said its consumer sentiment index jumped to 83.7 in May, its highest level since 2007, from 76.4 in the preceding month, outstripping expectations for a reading of 78.0.
A separate report by the Conference Board showed that its index of leading economic indicators rose 0.6% in April, more than double the 0.2% increase expected by economists.
The robust data bolstered expectations that the Federal Reserve could begin to scale back its USD85 billion a month asset purchase program this year.
The data came after a series of economic data releases on Thursday raised doubts over the strength of the U.S. economic recovery.
Official data showed that consumer price inflation and housing starts fell more-than-expected in April, while jobless claims posted the largest increase in six months.
Elsewhere, the Swissy was lower against the euro on Friday, with rising 0.43% to 1.2477 at the close.
In the week ahead investors will be focusing on Wednesday’s Federal Reserve minutes, as well as testimony on the economic outlook and monetary policy by Fed Chairman Ben Bernanke.
Markets will also be watching Wednesday’s speech by Swiss National Bank Chairman Thomas Jordan.
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 and Tuesday as there are no relevant events on these days.
Wednesday, May 22
The Chairman of the SNB Thomas Jordan is to speak; his comments will be closely watched.
The U.S. is to release data on existing home sales, a leading indicator of economic health, while the Federal Reserve is to publish the minutes of its most recent policy-setting meeting.
Meanwhile, Fed Chairman Ben Bernanke is to testify on the economy and monetary policy in Washington.
Thursday, May 23
The U.S. is to release the weekly government report on initial jobless claims and official data on new home sales, a leading indicator of economic health.
Friday, May 24
The U.S. is to round up the week with government data on durable goods orders, a leading indicator of production.
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