USD/CHF Daily Outlook for April 21, 2011

The Swiss economy will release today M3 money supply for the year ending March, yet the news is expected to have slight effect on the pair’s movement that will be more affected by US data. As of 12:30 GMT, the US will release initial claims for April 16 with expectations showing that number of people applying for jobless benefits decreased to 393,000 from 412,000 a weak earlier. Other data from the US, including leading indicators and Philadelphia Fed, are due at 14:00 GMT.

In the case of improvement in US data, the US dollar is predicted to uplift the pair to help the dollar to rebound after hitting a new fresh low versus the franc last week and after falling yesterday.

On Wednesday, the pair showed decline till the release of existing home sales which showed improvement as the rate recorded 3.7% advance from the revised 8.9% drop.

The outlook for the pair remains to the downside as the dollar is expected to remain weak amid the absence of any intervention by the Fed and amid growing speculations the SNB would raise borrowing cost in June, after the ECB interest rate hike this month.

Written by ForexMansion.com