Speculators are still using the Swiss franc as a funding currency for the carry trade.

The Swiss franc may face selling pressure as prices look past an uneventful economic calendar to take directional cues from fading risk appetite amid a flurry of market-moving the fourth quarter earnings announcements.

Sharp moves in Swiss Retail Sales results or Producer and Import Prices could force volatility, but the major risk to the Swiss franc remains any and all SNB rhetoric on its recent strengthening.

The State Secretariat for Economic Affairs (SECO) raised its growth outlook or the economy in 2010 from 0.4% to 0.7% as household spending and construction activity is expected to be stronger than previous estimates.

As the SNB withdraws its emergency program and softens its rhetoric to intervene in the foreign exchange market, the low-yielding currency may continue to lose ground.

Despite the improvement in the economy the Swiss National Bank is expected to keep their target rate at 0.25% as they continue to have deflation concerns.

The OECD raised its GDP forecast for the Alpine economy with positive growth returning at the end of 2009 offsetting earlier weakness for a net decline of 1.9 percent.

Swiss investor confidence weakened in November.

The countervailing forces of Swiss National Bank intervention and financial market flights to safety should make for another eventful week of Swiss franc trading.

The Swiss franc trended higher against the dollar over the past week as risk sentiment continued to drive price direction.