USD/CHF Daily Fundamental Analysis for April 29, 2011

The Swiss economy will release KOF Swiss leading indicator at 09:30 GMT which is expected to retreat to 2.20 from 2.24, where a drop in the indicator as expected may push the pair up.

Thereafter, attention will be directed to a wave of US data including personal spending and income for March at 12:30 GMT, Chicago purchasing manager for March at 13:45 GMT and University of Michigan confidence for April at 13:55 GMT.

Still, the outlook for the pair is to the downside, especially after the dovish announcement by the Fed chairman on Wednesday as he pledged to keep the lose monetary policy to boost growth, which pushed the dollar to all-time low against the Swiss franc.

Yesterday, US data released showed that annualized GDP for the first quarter cooled down to 1.8% compared with the 3.1% expansion recorded in the fourth quarter. Also, initial jobless claims for the week ending April 23 showed incline in the number of people asking for jobless benefits to 429,000 relative to 404,000 a week before, while pending home sales edged up 5.1% in March from the revised 0.7% a month earlier.

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