" "

forexchief

COZfx: USD/CHF weekly outlook

Discussion in 'Analisa Fundamental' started by harryer, Dec 30, 2013.

Share This Page

  1. harryer

    harryer Member

    Messages:
    450
    Likes Received:
    0
    Trophy Points:
    16
    COZforex: The US dollar declined to the lowest level since November 2011 against the Swiss franc on Friday before trimming losses, as poor year-end liquidity exaggerated market moves.

    USD/CHF hit a session low of 0.8800, the pair’s lowest since November 4, 2011. The pair subsequently consolidated at 0.8916 by close of trade, down 0.56% for the day and 0.51% lower for the week. COZFX strategist Nigel Boynton said, USD/CHF is predicted to find support at 0.8921, and a drop through could take it to the next support line of 0.8903. Meanwhile, the pair is predicted to find its first resistance at 0.8964, and a rise through could take it to the next resistance line of 0.8989.

    The Swissie rallied along with other European currencies, such as the euro and the pound, after European Central Bank Governing Council member Jens Weidmann said keeping interest rates low may endanger political reforms.

    According to Germany’s Bild newspaper, Weidmann said low inflation shouldn’t be used to justify loose monetary policy. "We must take care to raise interest rates again in a timely manner should inflation pressures build," he reportedly added.

    Demand for the greenback remained supported amid expectations of further stimulus tapering by the Federal Reserve. The US central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving US economy.

    Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, as the US recovery deepens.

    In the week ahead, the US is to publish reports on pending home sales, consumer confidence and jobless claims, as investors attempt to gauge the strength of the world’s largest economy.



    (COZ forex UK)
    " "

Share This Page