USD/CHF Daily Fundamental Analysis for May 4, 2011

The Swiss economy lacks fundamentals today, thus main highlight will be on US data. At 12:15 GMT then 14:00 GMT, the U.S economy is set to release ADP employment change where it is expected to decrease to 200,000 in April from the previous 201,000, while ISM non-manufacturing will rise to 58.0 in April from 57.3, according median estimates.

On Tuesday, we saw a rebound in the dollar after dipping to a record low against major currencies, including the swissy, last month as fears that al-Qaeda would seek to revenge from the US after the kill of their leader in Pakistan on the hand of US forces ignited concerns and boosted demand on safety assets including the greenback.

Thus, while the US dollar failed to rebound on expected rise in interest rate or remarkable improvement in US data, it managed to advance as a safe-haven currency which may help the dollar to pare some of the losses incurred since the end of last year if fears continued.

Hence, the pair may show some bullishness on the short term, especially as it will be in the sake of the SNB that seeks to depreciate the franc as its appreciation affected overseas sales negatively.

Written by ForexMansion.com