By CountingPips.com
The US dollar lost ground across the board against the other major currencies last week as the American currency fell for the week against the euro, Swiss franc, Japanese yen, Canadian dollar, Australian dollar, British pound sterling and the New Zealand dollar.
This coming week is all about the US Federal Reserve Committee and whether they will scale back or “taper” their $85 billion a month (QE3) bond buying stimulus program. 
The FOMC committee interest rate decision takes place on Wednesday afternoon and the market is largely expecting the Fed to make some kind of reduction in the the stimulus program. A recent poll by Bloomberg News showed that economists were expecting for the stimulus to be scaled back to $75 billion a month.
The market reaction (and US Dollar trading action) will likely depend, first of all on if there is reduction, the size of the reduction and finally the comments and guidance from Chairman Ben Bernanke following the committee announcement.
In addition to the US Fed news this week, there is also major economic news on the Monday schedule with the release of the Euro Zone consumer price index. Tuesday’s schedule has the United Kingdom and the United States consumer price index releases. Wednesday is headlined by the US Fed announcement and has the New Zealand GDP report release. Thursday holds the Switzerland interest rate decision, United Kingdom retail sales and the US weekly jobless claims while Friday has the Canadian consumer price index and euro zone consumer confidence releases.
Please See the week’s highlighted economic events below:
This Week’s Economic Highlights:
Sunday, September 15
China — foreign direct investment
New Zealand — Westpac consumer confidence
New Zealand — services index
Monday, September 16
Euro zone — consumer price index
United States — industrial production
United States — manufacturing production
Tuesday, September 17
Australia — RBA meeting minutes
United Kingdom — producer prices
United Kingdom — consumer price index
euro zone — Germany ZEW survey
United States — consumer price index
United States — long-term TIC flows
United States — nahb housing market Index
Wednesday, September 18
Australia — conference Board leading index
United Kingdom — bank of England minutes
Switzerland — ZEW survey
United States — housing starts/building permits
United States — Federal Reserve interest rate decision
United States — Federal Reserve comments on buying program
New Zealand — GDP report
Japan — merchandise trade balance
Thursday, September 19
Japan — leading index
Switzerland — trade balance
Switzerland — interest rate decision
United Kingdom — retail sales
United States — weekly jobless claims
United States — leading indicators
United States — Philadelphia Federal Reserve survey
Japan — foreign bonds/foreign stocks buying
Friday, September 20
Canada — consumer price index
euro zone — consumer confidence
Article by CountingPips.com – Forex Blog
