Investing.com - The dollar fell to more than one-year lows against the Swiss franc on Friday after data showed that U.S. fourth quarter growth was revised lower, while rising tensions in Ukraine and a weaker Chinese yuan also underpinned safe haven demand.
USD/CHF hit 0.8775, the weakest since November 2011 and ended Friday’s session down 0.90% at 0.8802. For the week, the pair lost 0.95%.
The pair is likely to find support at 0.8625 and resistance at 0.8888, Friday’s high.
The dollar weakened after the Commerce Department reported that U.S. fourth quarter gross domestic product was revised down to an annual rate of 2.4%, from a preliminary estimate of 3.2%. Analysts had expected a downward revision to 2.5%.
Earlier in the week, Fed Chair Janet Yellen acknowledged recent weakness in U.S. data, saying it indicates softness in the economy.
In testimony to the Senate banking committee in Washington, Ms. Yellen said it was hard to say how much the recent soft data was due to weather and added that the bank would be attentive to signals on whether the recovery is progressing in line with expectations.
Demand for the traditional safe haven Swiss franc was also underpinned as political and military tensions between Russia and Ukraine escalated, following reports that armed men had occupied airports in the pro-Russia Crimea region.
Meanwhile, concerns over a steep decline in the Chinese yuan curbed risk appetite, amid speculation that the country’s central bank has intervened to add volatility to the currency ahead of possible economic reforms.
In Switzerland, data on Thursday showed that the country’s economy grew 0.2% in the final three months of 2013 and expanded 1.7% on a year over-year basis.
Market expectations had been for quarterly growth of 0.4% and year-on-year growth of 2.0%.
In the week ahead, investors will be anticipating Friday’s U.S. nonfarm payrolls report for an indication of the strength of the recovery in the labor market.
Meanwhile, Switzerland is to publish data on consumer prices, and the central bank is to release data on foreign currency reserves.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday, as there are no relevant events on this day.
Monday, March 3
Switzerland is to publish its SVME PMI.
The U.S. is to release data on personal spending, while the Institute of Supply Management is to release data on manufacturing activity.
Wednesday, March 5
The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. Meanwhile, the ISM is to publish a report service sector activity.
Thursday, March 6
The U.S. is to publish the weekly report on initial jobless claims and data on factory orders.
Friday, March 7
The Swiss National Bank is to release data on foreign currency reserves. This data is closely scrutinized for indications of the size of the bank’s operations in currency markets. Switzerland is also to release data on consumer inflation.
The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.
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