Forex - USD/CHF weekly outlook: September 13-17

Published 09/12/2010, 07:33 AM
USD/CHF
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Investing.com – Last week saw the U.S. dollar fall to a 9-month low against the Swiss franc on Wednesday, before rebounding to close the week at a 5-day high following the release of better-than-expected U.S. employment data.

USD/CHF hit 1.0060 on Wednesday, the pair’s lowest since December 4, 2009; the pair subsequently consolidated at 1.0193 by close of trade on Friday, gaining 0.30% over the week.

The pair is likely to find support at 1.0060, the low of September 8, and resistance at 1.0262, the high of August 31.

The franc hit a 9-month high on Wednesday, amid increased risk aversion after a Wall Street Journal report highlighted the weaknesses of recent euro zone bank stress tests.

The U.S. dollar rebounded after official data showed that U.S. initial jobless claims fell-more-than-expected last week, declining to 451K, after increasing to a revised 478K in the preceding week.

Analysts had expected initial jobless claims to fall to 470K last week.

In the week ahead, markets will be looking towards Thursday's weekly report on U.S. initial jobless claims. Attention will also focus on government data on the country’s federal budget balance as well as key data on manufacturing activity in New York and Philadelphia.

Meanwhile, the Swiss National Bank is to publish its monetary policy assessment on Thursday. The bank will then announce its Libor rate, the London interest rate for 3-month Swiss franc deposits.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect USD/CHF.

Monday, September 13

Switzerland will begin the week by publishing a report on producer price inflation, a leading indicator of consumer inflation.

The U.S. will later release its federal budget balance, the difference in value between the federal government's income and spending during the previous month.

Tuesday, September 14

The U.S. will release key data on retail sales, a leading gauge of consumer spending. The country will also release data on business inventories.

Wednesday, September 15


In the U.S., the Federal Reserve Bank of New York is due to release key data on manufacturing sector activity, while the Federal Reserve is to produce information on its capacity utilization rate, the percentage of available resources being utilized by manufacturers, mines, and utilities.

The U.S. is also due to release key data on import prices, industrial production and crude oil inventories.

Meanwhile, in Switzerland, the ZEW research institute will publish a monthly survey of Swiss economic expectations, a leading indicator of economic health.

Thursday, September 16

The U.S. is to release key weekly data on initial jobless claims, after which the U.S. Treasury is to publish a report on TIC Long-Term purchases, which measures the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreigners.
 
Later in the day, the Federal Reserve Bank of Philadelphia is due to release key data on the manufacturing. The U.S. is also to produce data on the country's current account and producer price index, a leading indicator of consumer inflation.

In Switzerland, the Swiss National Bank is due to publish its monetary policy assessment. The bank will then announce its Libor rate, the London interest rate for 3-month Swiss franc deposits. The country is also expected to release a report on its industrial production.  

Friday, September 17


The U.S. is to end the week by producing key data on its consumer price index, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.

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