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COZfx: USD/CHF weekly outlook

Discussion in 'Analisa Fundamental' started by harryer, Sep 9, 2013.

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  1. harryer

    harryer Member

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    COZforex: The dollar slumped against the Swiss franc on Friday after US jobs data for August came in below expectations, fuelling uncertainty over whether the Federal Reserve will start to reduce stimulus measures later this month.

    USD/CHF declined as low as 0.9344, the lowest since September 3, before paring losses to settle at 0.9378, down 0.81% for the day and trimming the week’s gains to 0.28%. COZFX strategist Nigel Boynton said, USD/CHF is likely to find support at 0.9308, the low of September 2 and resistance at 0.9454, Friday’s high.

    The Department of Labor said the US economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists. The unemployment rate ticked down to a four-and-a-half year low of 7.3% from 7.4% in July, but this was partially due to more people dropping out of the labor force.

    The report also said that job growth in July was revised down to 104,000 from 162,000, while June’s figure was revised down to 172,000 from 188,000.

    The dollar came under broad selling pressure amid renewed uncertainty over whether the Fed will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18. Fed Chairman Ben Bernanke has said that the decision to begin tapering will depend on whether economic data is strong enough.

    Safe haven demand for the Swiss franc was also supported by ongoing tensions over possible military intervention against Syria. On Friday Russian President Vladimir Putin warned the US against launching military action against the Syrian government without the approval of the United Nations.

    In the week ahead, the dollar looks likely to remain under pressure ahead of the outcome of the Fed’s upcoming policy meeting later in the month. Investors will be looking ahead to Friday’s US data on retail sales and consumer sentiment for indications on the strength of the economic recovery.

    Switzerland is also to release data on retail sales, as well as a report on unemployment.

    (COZ forex UK)
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