Forex Pros – The week ending March 4 saw the Swiss franc soar to a record high against the U.S. dollar as ongoing violence in Libya pushed crude oil prices to 29-month high, sparking fears over the inflationary impact on global economic growth.
USD/CHF hit 0.9199 on Tuesday, the pair’s all-time low; the pair subsequently consolidated at 0.9242 by close of trade on Friday, shedding 0.40% over the week.
The pair is likely to find short-term support at 0.9199, Tuesday’s low and resistance at 0.9329, Friday’s high.
Crude oil for April delivery rose as much as 7.5% last week to USD105.17 a barrel in New York, the highest level since September 2008, amid concerns over a disruption to supplies.
Meanwhile, the U.S. Department of Labor said Friday that employers added 192,000 jobs in February, the most since May, surpassing expectations for an increase of 180,000. The unemployment rate unexpectedly fell to 8.9%, the lowest since April 2009.
However, the data disappointed some investors who see strong U.S. jobs growth as necessary for the Federal Reserve to end its second round of quantitative easing and raise interest rates.
The Swissie was also boosted by expectations that the Swiss National Bank could be closer to raising interest rates after SBN Vice-Chairman Thomas Jordan said Friday that low interest rates were not sustainable in the medium term.
In the week ahead, the U.S. is to release official data on retail sales for February as well as the University of Michigan Consumer Sentiment preliminary reading for March. Meanwhile, Switzerland is to publish government data on consumer price inflation.
Ahead of the coming week, Forex Pros has compiled a list of these and other significant events likely to affect the markets.
Monday, March 7
The U.S. is to begin the week with official data on consumer credit, which is closely correlated with consumer confidence.
Tuesday, March 8
Switzerland is to publish official data on its unemployment rate, an important signal of overall economic health, while the U.S. is to publish a report on economic optimism.
Wednesday, March 9
Switzerland is to publish government data on consumer price inflation, which accounts for a majority of overall inflation. In addition, the U.S. is to publish a government report on crude oil stockpiles.
Thursday, March 10
The U.S. is to publish a key weekly report on initial jobless claims, the nation’s earliest employment data. The country is also to publish a report on the trade balance, the difference in value between imported and exported goods and services over the month.
Friday, March 11
The U.S. is to round up the week with government data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity. The nation is also to publish a report on business inventories, while the University of Michigan is to produce preliminary data on consumer sentiment and inflation expectations.
ForexPros.com
