Investing.com - The U.S. dollar touched three-week lows against the Swiss franc on Friday, after data showing that U.S. factory output fell unexpectedly in January clouded the outlook for the recovery.
USD/CHF hit 0.8904, the lowest since January 24 and was last down 0.10% to 0.8926. For the week, the pair slid 0.45%.
The pair was likely to find support at 0.8865 and resistance at 0.8970.
The dollar slid after data showed that U.S. industrial production fell 0.3% from a month earlier in January, compared to expectations for a 0.3% gain.
The data fuelled concerns that inclement winter weather is acting as a drag on growth.
A separate report showed that the preliminary reading of the University of Michigan’s consumer sentiment index for February came in at 81.2, unchanged from the final reading in January. Analysts had expected the index to tick down to 80.6.
The dollar’s losses were held in check by expectations that the Federal Reserve will continue to scale back its stimulus program.
In her first Congressional testimony since her appointment as Fed Chair, Janet Yellen said Wednesday that the central bank would continue to gradually reduce the pace of its asset purchase program.
She also reiterated that the Fed plans to hold interest rates at zero “well past” the time the jobless rate falls below 6.5%.
In the week ahead, the U.S. is to publish data on inflation, as well as reports on the housing sector and manufacturing activity. Switzerland is to release data on economic expectations.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 17
Markets in the U.S. are to remain closed for the Presidents Day holiday.
Tuesday, February 18
The U.S. is to release data on manufacturing activity in the Empire State.
Wednesday, February 19
The ZEW Institute is to publish a report on economic expectations in Switzerland, a leading indicator of economic health.
The U.S. is to publish reports on building permits, housing starts and producer price inflation.
Meanwhile, the Federal Reserve is to publish the minutes of its most recent policy setting meeting.
Thursday, February 20
The U.S. is to release the weekly report on initial jobless claims and data on consumer price inflation. The nation is also to release data on manufacturing activity in the Philadelphia region.
Friday, February 21
The U.S. is to round up the week with private sector data on existing homes sales.