Forex - USD/CHF weekly outlook: September 20-24

Published 09/19/2010, 06:57 AM
USD/CHF
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Investing.com – Last week saw the U.S. dollar rebound from a 9-month low against the Swiss franc midweek, before turning lower on Friday, after worse-than-expected U.S. economic data dampened risk appetite.

USD/CHF hit 0.9931 on Tuesday, the pair’s lowest since December 4, 2009; the pair subsequently consolidated at 1.0096 by close of trade on Friday, shedding 0.99% over the week.

The pair is likely to find support at 0.9931, the low of September 14, and resistance at 1.0277, the high of September 10.

On Wednesday, the U.S. dollar rebounded from a 9-month low against the Swiss franc, after the Swiss National Bank cut its inflation expectations for 2010 and 2011, saying that, “Uncertainty about the future outlook for the global economy remains high. Economic recovery is not yet sustainable and downside risks predominate”.

But Friday saw the U.S. dollar turn lower after preliminary data showed that U.S. consumer sentiment in September unexpectedly fell to its lowest level since August 2009.

In the week ahead, the U.S. Federal Reserve is to announce its benchmark interest rate. The U.S. is also to release several reports on the housing sector as well as a weekly report on initial jobless claims. The country is also to release key data on manufacturing production while Federal Reserve chairman Ben Bernanke is to speak at a public engagement.

Meanwhile, Switzerland is to release key data on its trade balance.

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

Monday, September 20


The U.S. is to begin the week by publishing industry data on home sales, a leading indicator of economic health.

Tuesday, September 21

The U.S. Federal Reserve is to announce its benchmark interest rate, followed by the closely watched rate statement. The U.S. is also to release key data on building permits and housing starts, leading indicators of growth in the construction sector.

Meanwhile, Switzerland is to release data on its trade balance, the difference in value between imported and exported goods and services in the reported month.

Wednesday, September 22

The U.S. is to publish data on crude oil inventories as well as industry data on house prices, a leading indicator of the housing industry's health.

Thursday, September 23


The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health, as well as data on existing home sales. The country is also due to publish an index of leading economic indicators, designed to predict the future direction of the economy.

Friday, September 24

The U.S. is to end the week by producing key data on durable goods orders, a leading indicator of manufacturing production. The country is also to produce data on new home sales, a leading indicator of growth in the housing sector.

Later in the day, Federal Reserve Chairman Ben Bernanke is expected to deliver a speech on the U.S. economy. His comments will be closely scrutinized for any clues to the future direction of monetary policy.

Meanwhile, the Swiss National Bank is to publish its quarterly bulletin.

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