The USD/CHF rebounded in the week ended Nov. 4 after three weeks of incline as the tensions in markets sparked demand on theU.S.as the most favorable safe haven amid expected further intervention from the SNB to curb the franc’s advance and the BoJ intervention.
Fears reignited once again after Greek Prime Minister George Papandreou had surprised markets and European leaders with his call for a referendum on the euro area’s latest bailout package granted to Greece.
In fact, rejecting the bailout would deprive Greece from receiving the next 8 billion euro aid tranche needed to avert default which will in turn push Greece into a disorderly bankruptcy that might end its membership in the euro.
In addition, lackluster manufacturing and services reports from China, Switzerland, euro area, U.K., and U.S. worsened outlook for global major economies as it suggested that the sluggish growth pace would continue in the fourth quarter or even beyond that, thereby enhancing demand on refuges led by the greenback.
Last week, the Fed lowered growth forecasts and raised estimates for unemployment, whilst revealing that purchasing mortgage-backed securities is a valid option for the Fed to boost the slackening recovery.
This week, the main focus will be inflation and unemployment data from Switzerland while the U.S. will release less important fundamentals.
For this week, the release of the data will be as follows:
Monday Nov. 7:
As of 06:45 GMT, the Swiss economy will release unemployment for the month of Oct. followed by CPI, specifically at 08:15 GMT, for the same month, while the United States lacks fundamentals.
Tuesday Nov. 8:
At 06:45 GMT, the Swiss economy will release the last data this week which is SECO consumer confidence for Oct, where the U.S. has no releases.
Wednesday Nov. 9:
The U.S. will release MBA mortgage applications for Nov. 4 at 12:00 GMT followed by whole sale inventories at 15:00 GMT.
Thursday Nov. 10:
As of 13:30 GMT, the U.S economy will release trade balance which is expected to show a widened deficit of $46.0 billion in Sep. from $45.6 billion deficit a month earlier. At the same time, initial jobless claims for the week ended Nov. 4 and continuing claims for the week ended Oct. 28 will be available. At 19:00 GMT, the monthly budget statement for Oct. is predicted to show a deficit of $110.5 billions.
Friday Nov. 11:
The week ends with the release of U.S. University of Michigan confidence, at 14:55 GMT, which is estimated to slide to 60.0 in Nov. compared with the prior reading of 60.9.
