USD/CHF Daily Fundamental Analysis For May 20, 2011
The week ends with the release of no data from both economies which suggest that the pair will follow the general sentiment in market.
On Thursday, initial jobless claims retreated to 409,000 in the week ending May 14 compared with the revised 438,000 a week before, yet housing data continued to become downbeat as following the drop in housing starts and building permits released earlier this week, existing home sales dropped 0.8% in April, relative to the prior 3.7% advance recorded in March.
Amid the absence of data from the Swiss economy, the dollar is one determining the pair’s direction as the greenback was affected by downbeat data from the US and did not get support from the FOMC minutes as Fed officials referred to a gradual exit plan, yet they mentioned that any moves “would necessarily begin soon.”
Despite the pair’s drop seen on the weekly, the outlook for the pair remains to the upside as the dollar is predicted to continue its rebound against the franc as the SNB is estimated to keep interest rate low for longer while, whereas the dollar may gain some momentum after the end of the $600 billion bond-purchase program in June.
Originally posted here
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