USD/CHF Daily Fundamental Analysis for July 20, 2011 |
On Tuesday trading, the dollar slipped against a basket of major currencies yet it advanced against the Swiss franc as hopes that European leaders will reach an agreement regarding the Greek second bailout damped demand on safe havens, specifically the franc which has been the most favorable safe haven recently especially due to panics resulting from euro area debt crisis as a result of the proximity of Switzerland from euro zone economies.
Bond selling by Greek and Spanish governments boosted some confidence in markets before European leaders meeting this week.
On Wednesday, eyes will be on MBA mortgage applications for July 15 at 11:00 GMT while will be followed by existing home sales at 14:00 GMT. Existing home sales report is predicted to advance 2.6% from the prior 3.8% drop.
The main focus this week is on housing data from the US, where housing starts rose to 629,000 in June from 549,000 in May, according to data released on Tuesday.
The dollar is expected to continue its rebound against the franc with the low possibility of seeing a third round of stimulus by the Fed, especially as Bernanke referred last week that the economy will show progress in the second half of the current year.
Originally posted here.
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