By ForexMansion.com
Today, the Swiss economy lacks economic fundamentals and thereby the pair will depend mostly on US data, where the main highlight this week is on US figures after hawkish comments from some Fed officials that stated that the US may cut the second-round stimulus after the progress seen by the economy.
Nevertheless, ADP employment released yesterday showed that the private sector added 201,000 jobs in March, below expectations of 208,000, while today eyes will be on US jobless claims due at 12:30 GMT, ahead of the release of the awaited non-farm payrolls on Friday.
The USD/CHF is showing upside tendency as the latest Fed announcements gave a boost to the dollar while, on the other hand, the low probabilities of seeing an intervention by the SNB, as the growth pace and inflation in the Swiss economy are stable, is putting some downside pressure on the franc.
The improvement in the KOF Swiss leading indicator yesterday to 2.24 in March from the revised 2.19 did not give support to the franc as the dollar showed strength.
Yet, it seems that the SNB may have to depreciate the franc as the currency’s appreciation is affecting exports, which prompted some economists to see that it is better to Switzerland to shift to the euro.
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Originally posted here
