Investing.com - The dollar moved higher against the Swiss franc on Friday, but remained below the three-month peaks hit in the previous session as investors digested a mixed bag of U.S. economic data.
USD/CHF ended Friday’s session at 0.8926, up 0.19% for the day, holding just below the highs of 0.8959 struck on Thursday, the most since February 13.
The dollar was boosted after the Commerce Department reported that U.S. housing starts jumped 13.2% in April, after a 2.0% increase in March.
It was the largest increase in five months, indicating that the economy is shaking off the effect of a weather related slowdown over the winter.
The upbeat housing data was offset by a report showing that U.S. consumer confidence deteriorated in May. The University of Michigan''s consumer sentiment index dropped to 81.8, from 84.1 the month before. Analysts had expected a slight uptick to 84.5.
The dollar advanced to three month highs against Swissy in the previous session as sharp losses in the euro bolstered the greenback.
The single currency came under renewed selling pressure after weaker-than-expected data on euro zone first quarter growth added to pressure on the European Central Bank to ease monetary policy at its next meeting in June, in order to safeguard the recovery in the region.
The euro zone’s gross domestic product grew just 0.2% in the first quarter, compared to expectations for growth of 0.4% and expanded by a smaller than expected 0.9% from a year earlier.
EUR/CHF ended Friday’s session at 1.2221, edging up 0.08%.
In the week ahead, investors will be looking to the minutes from the Federal Reserve''s latest monetary policy meeting, due for release on Wednesday, for insight on the central bank''s view of the economy.
Ahead of the coming week, Investing.com has compiled a list of this and other significant events likely to affect the markets. The guide skips Monday, as there are no relevant events on this day.
In the U.S., Federal Reserve Bank of Philadelphia Charles Plosser and Federal Reserve Bank of New York President William Dudley are to speak.
Wednesday, May 21
Fed Chair Janet Yellen is to speak at an event in New York.
Later Wednesday, the Fed is to publish the minutes of its May meeting.
Thursday, May 22
The U.S. is to release its weekly report on initial jobless claims and private sector data on existing home sales.
Friday, May 23
The U.S. is to round up the week with data on new homes sales.