USD/CHF Forecast Jan. 23, 2012, Fundamental Analysis
Fundamental Reports
USD/CHF Forecast Jan. 23, 2012, Fundamental Analysis
This week, amid the absence of fundamentals from the Swiss economy, the main focus will be on growth data from both economies as investors will be eager to see the effect of the global slowdown the escalating European debt crisis on both economies in the fourth quarter.
However, more focus may be given to the latest developments in the euro area as EU finance chiefs meet inBrusselsand policy makers and business leaders meet in Davos, while euro area, including Germany, France, Spain and Italy, prepare to sell debt.
In the week ended January 20, the USD/CHF showed a drop as the improvement in the sentiment after successful bond selling, which saw strong demand and drop in borrowing cost, by many euro area economies and progress inU.S.data damped demand on the greenback as a refuge.
Still, the general sentiment in the market is more affected by the latest developments in the euro area amid chief concerns the lingering European debt crisis would push global economies into another recession.
Last week, the World Bank lowered global growth forecasts to 2.5% this year compared with 3.6% announced in June, where it said the euro area expected contraction of 0.3% will impact the growth pace in emerging markets.
Mrs. Irit Rutenberg is FXEmpire.com Content and Analysis Team Manager, with a few years of experience in the field. The FXEmpire.com news desk members are all of an academic background in the finance field with practical and theoretical experience in trading.
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