The USD/CHF continued the southern journey and ended the week with more gains as the uncertainty and volatility dominated the scene. With the prevailing uncertainty swissy remains favored for gains as woes rise once again over the outlook for the global economy amid lingering problems across major financial hubs.
In the week ending April 15, 2011 the market was rattled by rising debt woes once again alongside fears of further monetary tightening from China which suppressed the risk appetite of fears of slowing growth.
Swissy gained momentum as Moody’s downgraded Ireland, Greece announced further austerity measures, and investors where jittery ahead of the Finnish parliamentary elections that might see euro-skeptics gain momentum and that raised fears of a block for Portugal’s aid request.
The fears prevail for this week yet generally we expect a calmer week yet with high volatility as investors leave for the long Easter weekend and that might influence market movements. The focus will be still on the euro area and the debt problems as the main source of support for swissy on haven demand to continue the gains versus greenback.
The fundamental highlights for this week will be on the US economy affecting the dollar as Switzerland lacks fundamentals for the week:
Monday April 18:
No major releases are scheduled from the US as well and accordingly the start of the week will be more based on the sentiment as investors still focus on China and the European debt crisis.
Tuesday April 19:
At 12:30 GMT the U.S. economy will release building permits for March, and expected to come at 540 thousand compare with the previous of 517 thousand. The housing starts for March is also expected with a rise from the previous 479 thousand to 520 thousand which will be a boost for the sentiment and help ease haven demand but overall swissy will remain strong as the dollar’s weakness prevails.
Wednesday April 20:
The U.S economy is to release existing home sales for March at 14:00 GMT; the reading is expected to come at 5.00 million with 2.5 percent while the previous reading was 4.88 million.
The U.S. housing data is anticipated to show some improvement during March, which could help the greenback to rebound.
Thursday April 21:
At 12:30 GMT the U.S economy will release its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance has reached 412 thousand.
The U.S. house price index for February will be issued at 14:00 GMT. The leading indicators index for March is expected to retreat to 0.2% from the previous increase of 0.8%.
Finally, U.S. economy will release Philadelphia Fed Index for April, which expected to slow to 37.0 from the previous 43.4.
Friday April 22:
The week ends on a short note as the market will be out with central banks holiday on Good Friday.
Originally posted here
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