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Forex - USD/CHF weekly outlook: September 16 - 20

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Shutterstock photo - The dollar slipped lower against the Swiss franc on Friday after weaker-than-forecast U.S. data saw investors reassess expectations over the timing of a possible reduction in Federal Reserve stimulus.

USD/CHF hit session lows of 0.9282 on Friday, before settling at 0.9295 0.11% lower for the day and down 0.33% for the week.

The pair is likely to find support at 0.9235 and resistance at 0.9370, the high of September 11.

The Commerce Department said U.S. retail sales rose 0.2% in in August, undershooting expectations for a 0.4% increase. The data added to concerns over the outlook for third quarter growth.

A separate report showed that the preliminary reading of the University of Michigan's consumer sentiment index fell to a five month low of 76.8 in September, from a final reading of 82.1 in August.

The reports came a week after the latest U.S. employment report showed that the economy added slightly fewer jobs than expected in August.

The dollar weakened amid renewed uncertainty over whether the Fed will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18. Fed Chairman Ben Bernanke has said that the decision to begin tapering will depend on whether economic data is strong enough.

In the week ahead, investors will be keenly anticipating the outcome of the Fed's policy-setting meeting on Wednesday, and a press conference with Ben Bernanke will be closely watched.

Meanwhile, the Swiss National Bank is to announce its Libor rate.

Ahead of the coming week, has compiled a list of these and other significant events likely to affect the markets. The guide skips Friday as there are no relevant events on this day.

Monday, September 16

The U.S. is to publish the Empire state manufacturing index, in addition to data on industrial production and the capacity utilization rate.

Tuesday, September 17

The U.S. is to release data on consumer price inflation, which accounts for a majority of overall inflation.

Wednesday, September 18

The ZEW Institute is to publish a report on economic expectations in Switzerland, a leading indicator of economic health.

The U.S. is to release official data on building permits, a leading indicator of future construction sector activity, as well as data on housing starts.

The Fed is to announce its federal funds rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision. Chairman Ben Bernanke is to hold a press conference after the rate announcement.

Thursday, September 19

The SNB is to announce its Libor rate and publish its quarterly monetary policy assessment.

The U.S. is to round up the week with a report on initial jobless claims, as well as the Philly Fed manufacturing index and data on existing home sales. - offers an extensive set of professional tools for the financial markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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