Topic: COZfx: USD/CHF weekly outlook
COZforex: The US dollar ended the week higher against the Swiss franc on Friday in part due to heightened expectations that the Federal Reserve could start to tighten monetary policy in the early part of next year.
USD/CHF hit 0.8899, the highest since February 27, before trimming gains to end Friday’s session at 0.8866. For the week, the pair gained 0.68%. COZforex senior currency strategist Ian • Quigley said, USD/CHF is predicted to find support at 0.8848, and a decline through could take it to the next support line of 0.8827. Meanwhile, the pair is predicted to find its first resistance at 0.8882, and a rise through could take it to the next resistance line of 0.8895.
Yesterday, a Swiss National Bank Board member, Fritz Zurbruegg, indicated that the central bank is prepared to use a variety of measures, including negative interest rates, to defend its cap on the Swiss franc.
Demand for the dollar continued to be underpinned by expectations that the Federal Reserve could start to hike interest rates as soon as April 2015.
Market sentiment was boosted by indications that China’s government is prepared to do more to shore up the cooling economy. China's premier Li Keqiang said Friday his country has policies in place to counter economic volatility. The remarks eased concerns over recent signs of a slowdown in the world’s second-largest economy.
Data on Friday showing that US consumer spending rose 0.3% last month after a downwardly revised gain of 0.2% in January also supported the dollar.
A separate report showed that the University of Michigan’s consumer sentiment index slipped to 80 in March, down from 81.6 the month before. It was higher than the preliminary March reading of 79.9 but below forecasts of 80.5.
(COZ forex UK)