USD/CHF has been choppy throughout most of July, and the rally by the Swiss franc may just be a blip. Given the troubles in Europe and the global slowdown, many investors will be drawn to the safety of the US dollar. However, if the US economy continues to produce weak data, the Fed may have to step in, and this could hurt the dollar.
in view of this, would not chase this decline here and would be prudent to sell dollar on recovery.
4hrs
UBS Consumption Indicator: Tuesday, 2:00. This important conusmer index dropped to 1.05 points last month, a three-month low.
Retail Sales: Thursday, 3:15. This key indicator sparkled in June, jumping 6.2%. The market estimate for July stands at a still-respectable 3.6% gain.
SVME PMI: Thursday, 3:30. This PMI has been below the 50 point level since April, indicating continuing weakness in the Swiss economy. The market forecast calls for the index to decline further this month, to 47.2 points.
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