The Switz Franc gained strength against the U.S dollar in last weeks trading session after data earlier in the week showed that the U.S. economy grew just 0.2% in the three months to March, slowing from 2.2% in the final quarter of 2014. It was the slowest rate of growth in a year.
The weaker-than-expected data prompted investors to push back expectations on the timing of an initial rate hike by the Federal Reserve to later this year from midyear.
In its rate statement on Wednesday the Federal Reserve said recent indications of a slowdown in growth were probably due to “transitory factors.
Initial bias remains bearish this week as 21 crosses 55 EMA downward with SSRC oscillator showing signs of more selling is to be expected and current fall should target 100% projection of 1.0127 to 0.9471 from 0.9862 at 0.9206. On the upside, above 0.9493 resistance will turn bias neutral first and bring some consolidations. But risk will remain on the downside as long as 0.9862 resistance holds.
In the week ahead, investors will be focusing on Friday’s U.S. Non-farm payrolls report, for a fresh indication on the strength of the economic recovery.