Forex: USD/CHF: US Advance GDP slows to 3.2%, while Jobless Claims rise

on Jan 30, 2014
Updated: Oct 21, 2019
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_iNVEZZ.com: Thursday, January 30th:_ The US Bureau of Economic Analysis (BEA) today reported that the Advance Gross Domestic Product (GDP) grew at an annualized and inflation-adjusted 3.2 percent in the fourth quarter of 2013, a rate slower than the 4.1 percent scored in the prior quarter. The result was in line with analysts’ forecasts.

The BEA comments that “the deceleration in real GDP in the fourth quarter reflected a deceleration in private inventory investment, a larger decrease in federal government spending, a downturn in residential fixed investment, and decelerations in state and local government spending and in non-residential fixed investment that were partly offset by accelerations in exports and in personal consumption expenditures and a deceleration in imports”.

The US Department of Labor announced that Unemployment Insurance Initial Claims for last week rose more than expected to 348,000 from the prior 329,000 (revised up from 326,000). Market expectations were for a number of 330,000. The reading reached its highest level since the middle of last month. The four-week average rose to 333,000 from 332,250 in the preceding week.

The labor department also reported that the number of people continuing to receive jobless benefits declined by 16,000 to 2.991 million in the week ended 17 January.
Following these releases the USD/CHF rose to its highest level since 23 January, at 0.9022, where the price hit the 200-hour simple moving average (SMA), which currently acts as resistance. Right now, the pair is trading at 0.9012, up 0.62 percent thus far intraday.

The 89-day SMA at 0.9031 may provide the next level of resistance.
Earlier today the Swiss KOF institute released its Economic Barometer, which rose to 1.98 points this month from the prior 1.95.
The institute said that the indicator rose “for the tenth consecutive time, albeit at a slower pace than before”. The KOF also noted that the Barometer reached its highest level since July 2011 and that the increase was mainly a result of an improvement in domestic consumption. The KOF added that this month “the credit business stabilized, while the construction sector slowed down slightly”.
Resistances today: 0.9000, 0.9040 and 0.9075.
Support: 0.8965, 0.8940 and 0.8915.