In early deals on Tuesday, the Swiss franc edged up against its most major counterparts as the Swiss UBS consumption indicator rose in March, indicating that the downtrend seen in private consumption halted for the time being.
The UBS said its monthly consumption indicator for Switzerland rose to 0.99 in March from a revised 0.89 in February. However, the indicator is still below its long-term average of 1.50.
The UBS said the prospects for private consumption are becoming increasingly gloomier due to an expected acceleration in the number of unemployed in the course of economic slowdown.
The Swiss franc that closed yesterday's trading at 1.6933 against the pound strengthened to 1.6790 during early deals on Tuesday. The near term resistance level for the Swiss currency is seen at 1.666.
In early trading on Tuesday, the Swiss franc climbed to 1.5035 against the euro. This may be compared to Monday's closing value of 1.5062. On the upside, 1.49 is seen as the next likely target for the Swiss currency.
France's consumer confidence indicator rose to minus 41 in April from March's revised reading of minus 42, the statistical office INSEE said today. Meanwhile, economists had expected the indicator to log minus 43, which was the initial estimate for March.
Another report showed that the unemployment in France increased 2.7% or 63,400 in March from the previous month. The number of unemployed increased to 2.44 million in March. However, the increase in March was smaller than in February and January. Economists expect the unemployment rate to climb to around 10% by the next year from 8.2%.
The Swiss franc rose to 1.1549 against the U.S. dollar in early deals on Tuesday. If the Swiss franc gains further, it may likely target the 1.150 level. The dollar-franc pair was worth 1.1566 at yesterday's New York session close.
The Federal Reserve Open Market Committee is scheduled to meet today and tomorrow to discuss the near-term direction of monetary policy and the monetary policy-setting arm of the Fed will make an announcement at 2:15 pm ET tomorrow. The Federal Monetary Policy Committee consists of seven Governors of the Federal Reserve Board and five Federal Reserve Bank Presidents.
The Swiss franc reversed direction against the yen after hitting a new multi-week low of 82.73 at 2:45 am ET Tuesday. Presently, the franc-yen pair is trading at 83.11 with 83.9 seen as the next target level. At yesterday's close, the pair was quoted at 83.71.
Japan's retail sales were down 3.9 percent on year in March, the Ministry of Economy, Trade and Industry said today, coming in at 11.723 trillion yen. That was better than analyst expectations for a 4.9 percent annual decline following the 5.8 percent fall on year in February. On a monthly basis, retail sales were down 1.1 percent - worse than forecasts for a 0.4 percent decline following the revised 0.2 percent contraction.
Confidence amongst Japanese small and medium sized companies rose to 30.8 in April from 30.4 in March, a report from the Shoko Chukin Bank showed. Economists were expecting the indicator to rise to 31. A reading below 50 suggests that pessimists outnumber optimists.
The Bank of Japan, or BOJ, begins its two-day monetary policy meeting today. The policy board is expected to keep the BOJ's target for the unsecured overnight call money rate unchanged at 0.1%.
Investors are now likely to focus on the New York session, in which the S&P/Case-Shiller home price index is scheduled to be released at 9:00 am ET. Economists expect an 18.8% year-over-year decline in the 20-city composite house price index in February.
The Conference Board is set to release its consumer confidence report for April at 10:00 am ET. The survey, which is based on a survey of 5,000 US households, is expected to show that the consumer confidence index will modestly increase to a reading of 29.9 from the previous reading of 26.0.
Also, the Federal Reserve Bank of Richmond will publish its manufacturing index for April at 10:00 am ET. Analysts expect the headline figure to drop to minus 17 from minus 20 posted in the previous month.
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