USD/CHF Daily Fundamental Analysis for September 8, 2011

The U.S. dollar fell slightly against the franc as a correctional movement for Tuesday’s sharp drop which followed the SNB latest intervention through setting a ceiling target for the franc against the euro. On Monday, the SNB surprisingly decided to set a target for the franc versus the euro at 1.20 in the most recent step to curb the franc’s runaway while it vowed to “enforce this minimum rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities.”

On Wednesday, the pair did a light downside correction where the SNB action sapped demand on safe havens and boosted shares. The dollar is predicted to remain under pressure with rising speculations the Fed Chairman will increase quantitative easing measures in his speech on Thursday.

On Thursday, as of 05:15 GMT, the Swiss economy will release unemployment for August with expectations referring to steadiness in the seasonally adjusted reading at 3.0%.

At 12:30 GMT, the U.S economy will release trade balance which is expected to show a narrowed deficit of $49.8 billion in July from $53.1 billion deficit a month earlier. At the same time, initial jobless claims for the week ended September 2 and continuing claims for the week ended August 27 will be available.