The USD/CHF continues to trade around record lows as swissy extends the gains versus the weak greenback. With calm thin trading on Easter Monday the market remained mixed and investors focused on the week ahead and the heavy data which might increase uncertainty.
Risk aversion eased last week but swissy’s gains remained evident with some demanding the franc for hedge against the slumping dollar as well against the high uncertainty in the market.
Heavy data await the market this week, alongside strong earnings which will keep the sentiment mixed and accordingly affect the pair. The US growth figures alongside the FOMC rate decision and Bernanke’s Feds conference all will keep the volatility high with the odds favoring swissy for now for gains.
On Tuesday, Switzerland returns to the market with early fundamentals due for release. At 06:00 GMT investors await Switzerland’s March trade data. Investors look for signs of effect on trade from the surging franc which surely started to be seen and likely see the surplus shrink from February’s 2.49 billion.
On the other side, we have consumer confidence due for release from the United States. US consumer confidence for April at 14:00 GMT that is expected to show improvement to 64.5 compare with the previous 63.4.
The volatility is expected to remain high with investors returning to the market in Europe from a long Easter holiday and especially as they reassess the rally seen the previous week, which might trigger strong fluctuations and correctional movements.
Originally posted here
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