Economic Events: (GMT)
There are no economic events scheduled in Switzerland
15:00 USD Pending Home Sales (MoM) -0.5% 7.3%
The National Association of Realtors (NAR) Pending Home Sales Report measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
19:15 USD Interest Rate Decision 0.25% 0.25%
Federal Open Market Committee (FOMC) members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
A higher than expected rate is positive/bullish for the USD, while a lower than expected rate is negative/bearish for the USD.
19:15 USD FOMC Statement
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) statement is the primary tool the panel uses to communicate with investors about monetary policy. It contains the outcome of the vote on interest rates, discusses the economic outlook and offers clues on the outcome of future votes.
A more dovish than expected statement could be taken as negative/bearish for the USD, while a more hawkish than expected statement could be taken as positive/bullish for the USD
USD/CHF Fundamental Analysis Jan. 25, 2012, Forecast
Analysis and Recommendations:
The USD/CHF is trading at 0.9291 having opened at 0.9277.
As the day progressed the Swissie lost whatever steam it had, first on weak manufacturing data and industrial orders throughtout the eurozone. The reports came in pretty close to forecast and a bit above, but were still dissappointing. Throughout the day, the greenback gathered steam, as investors shifted from risk into the safety of dollars. The dollar moved up against all of its trading partners. Eventually pushing up against the Swissie. At this writing, the USD is up .13% and holding pretty steady.
Wednesday will be all about Greece and the EU, stressed out market players, are reacting to any news, statements or data pushing currencies up and then down. First they are reacting and then they are evaluating.
Tomorrow ECB President will make statements and later in the day the FOMC will issue a statement, each can move the markets.
Upcoming Govt Bond Sales Dates
Jan 25 10:10 Sweden Nominal bond auction
Jan 25 10:30 Germany Eur 3.0bn 3.25% Jul 2042 Bund
Jan 25 16:30 Italy Details BTP/CCTeu on Jan 30
Jan 25 18:00 US Auctions 5Y Notes
Jan 26 10:10 Italy Auctions CTZ/BTPei
Jan 26 18:00 US Auctions 7Y Notes
Jan 27 10:10 Italy BOT auction
Originally posted here
