USDCHF posts a strong week

The pair remains in a consolidation despite this week's bullish performance.

Stocks (1)

The US Dollar was bearish against all of its major pairs on Friday.   

The Euro was bullish against most of its major pairs with the exception of the AUD, GBP and JPY. In Europe, the European Commission has reported 3Q GDP at +12.7% (vs -11.8% in 2Q) and September trade balance at 24 billion euros surplus (vs 22.5 billion euros surplus expected). Also, France's INSEE has posted final readings of October CPI at +0.0%, vs -0.5% the previous month.

The Australian dollar was bullish against all of its major pairs. 


Regarding the week's U.S. economic data front:

The University of Michigan's Consumer Sentiment Index unexpectedly fell to 77.0 on month in the November preliminary reading (82.0 expected), from 81.8 in the October final reading. 

The Consumer Price Index was unchanged on month in October (+0.1% expected), compared to +0.2% in September. The Producer Price Index Final Demand rose 0.3% on month in October (+0.2% expected), compared to +0.4% in September. 

Initial Jobless Claims fell to 709K for the week ending November 7th (731K expected), from a revised 757K in the prior week. Continuing Claims declined to 6,786K for the week ending October 31st (6,825K expected), from a revised 7,222K a week earlier. U.S. Job Openings rose to 6.436 million on month in September (6.500 million expected), compared to a revised 6.352 million in August.

The Monthly Budget Deficit grew to 284.1 billion dollars on month in October (275.0 billion dollars expected), from 134.5 billion dollars in September. 

Mortgage Bankers Association's Mortgage Applications fell 0.5% for the week ending November 6th, compared to +3.8% in the week before. 

The National Federation of Independent Business's Small Business Optimism Index remained unchanged at 104.0 on month in October (104.1 expected), in line with September. 

On Monday, Empire Manufacturing for November is expected to spike to 13.9 on month, from 10.5 in October. 

Looking at the major pars, the USD/CHF gained the most over the last 5 days posting a return of 1.49% or 133 pips on the week. Despite the strong rebound the pair remains stuck in a holding pattern. We need to see a break above 0.9205 resistance for any change of a trend reversal above the next major resistance level of 0.93. A break below 0.898 would resume the prior downtrend.



Source: GAIN Capital, TradingView

More from Forex

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.