Topic: COZfx: USD/CHF weekly outlook
COZforex: The dollar ended the week lower against the Swiss franc on Friday as weaker-than-expected US housing data added to concerns that the economic recovery is losing momentum.
USD/CHF was last down 0.22% to 0.8882, and ended the week down 0.40%. COZforex senior currency strategist Ian • Quigley said, USD/CHF is expected to find support at 0.8861, and a drop through could take it to the next support line of 0.8830. Meanwhile, the pair is predicted to find its first resistance at 0.8919, and a rise through could take it to the next resistance line of 0.8946.
In economic news, a report showed that Switzerland’s trade surplus widened more-than-expected to CHF2.59 billion in January, compared to a surplus of CHF0.52 billion registered in the previous month. The report also showed a rise in the Swiss exports and declined in the nation’s import.
The dollar slid after a report showed that US existing home sales dropped by a larger-than-forecast 5.1% in January, dropping to an 18-month low. Investors continued to look past a recent series of disappointing US economic reports, attributing them to severely cold winter weather.
Official also discussed when to begin raising interest rates, the minutes said.
Dallas Fed President Richard Fisher said Friday that the central bank should continue to taper its asset-purchase program. Separately, St. Louis Fed President James Bullard said the US economy is headed for a good year of growth and he expects the Fed to continue rolling back its stimulus program.
(COZ forex UK)