Forex Pros – Last week saw the Swiss franc surge to a record high against the U.S. dollar as Japan’s unfolding nuclear crisis and ongoing geopolitical tensions in the Middle East and North Africa sent oil prices higher and soured risk appetite.
USD/CHF hit 0.8895 on Wednesday, the pair’s all-time low; the pair subsequently consolidated at 0.9008 by close of trade on Friday, tumbling 2.86% over the week.
The pair is likely to find support at 0.8895, Wednesday’s low and resistance at 0.9197, Wednesday’s high.
Over the weekend, workers at the stricken Fukushima Daichi nuclear power station, north of Tokyo, continued to battle to prevent a meltdown and spread of radiation from the facility, which was hit by an earthquake and tsunami that also killed 7,653 people and left 11,746 more missing in northeast Japan.  Â
Elsewhere, a Western coalition began military intervention early Saturday to prevent Libyan dictator Moammar Gadhafi’s forces from overrunning rebel positions, while anti-government clashes continued in the Middle East.
On Thursday, the Swiss National Bank kept its key interest rate on hold, saying that while economic growth had been more vigorous than expected recently, the European Union debt crisis and rising oil prices pose considerable risks going forward. The bank also raised its forecast for economic growth in 2011 to 2% from 1.5%.
In the week ahead, the yen’s movements will continue to be the main focus for markets. Elsewhere, the Chairman of the U.S. Federal Reserve, Ben Bernanke, is to speak while Switzerland is to publish data on its trade balance.
Ahead of the coming week, Forex Pros has compiled a list of these and other significant events likely to affect the markets.
Monday, March 21
The U.S. is to publish industry data on existing home sales, a leading indicator of economic health.
Tuesday, March 22
Switzerland is to publish a government report on its trade balance, the difference in value between imported and exported goods over the month.
In the U.S., the President of the Federal Reserve Bank of Dallas, Richard Fisher is to deliver a speech in Frankfurt; his comments will be closely watched for clues to future monetary policy.
Wednesday, March 23
The U.S. is to publish official data on new home sales, a leading indicator of economic health. In addition, the Chairman of the Federal Reserve, Ben Bernanke is to deliver a speech at a public engagement; his comments will be closely watched for any clues to the possible future direction of monetary policy.
Thursday, March 24
The U.S. is to publish official data on durable goods orders, a leading indicator of production as well as data on initial jobless claims, the nation’s earliest employment data.
Friday, March 25
The U.S. is to round up the week with final data on its fourth quarter gross domestic product, the broadest measure of economic activity and the primary gauge of the economy’s health. Meanwhile, the University of Michigan is to publish revised data on consumer sentiment and inflation expectations.
ForexPros.com
