USD/CHF hit highs of 0.9367 on Friday; the pair’s highest since June 10, before settling at 0.9340 at the close of trade, up 0.77% for the day and 1.39% higher for the week.
The pair is likely to find support at 0.9240, Friday’s low and resistance at 0.9417, the high of June 10.
The dollar rallied after Fed Chairman Ben Bernanke said Wednesday that the bank could begin slowing its USD85 billion-a-month bond purchasing program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.
The bank said it expects the U.S. economy to grow between 2.3% and 2.6% in 2013. The Fed also said it expects the unemployment rate to fall to between 6.5% and 6.8% by the end of 2014 and inflation to edge closer to its 2% target.
On Thursday, the Swiss National Bank kept monetary policy unchanged following its policy setting meeting and said the Swiss franc remains “high”.
The SNB left its benchmark interest rate unchanged at zero, in line with expectations.
The bank also maintained the minimum exchange rate floor at 1.20 per euro saying the measure is “important in order to avoid an undesirable tightening of monetary conditions.”
The central bank reiterated that it would defend the exchange rate floor by buying foreign currency in unlimited quantities in necessary.
The SNB said it still anticipates growth in a range of 1% to 1.5% in 2013 but warned that risks to the economy remained high, saying “tensions can reappear at any moment on global financial markets.”
In the week ahead, investors will be closely watching U.S. data on durable goods orders, jobless claims and consumer confidence for signs that the economic recovery is on track.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday as there are no relevant events on this day.
Tuesday, June 25
The U.S. is to publish official data on durable goods orders, a leading indicator of production, as well as closely watched reports on consumer confidence and new home sales.
Wednesday, June 26
The U.S. is to release revised data on first quarter economic growth as well as government data on crude oil stockpiles.
Thursday, June 27
The U.S. is to release the weekly government report on initial jobless claims along with data on personal income and expenditure, which is to be followed by private sector data on pending home sales.
Friday, June 28
Switzerland is to publish its KOF economic barometer, an important indicator of economic health.
The U.S. is to round up the week with a report on manufacturing activity in Chicago and revised data from the University of Michigan on consumer sentiment.
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