The USD/CHFfluctuated in the week ended Dec. 9 amid mixed vibes as some fears aroused after S&P downgrade warning to euro zone nations and banks while confidence was restore after European leaders agreed to toughen budget rules, lend the IMF bilateral loans up to 200 billion euros to help debt-trapped nations and increase the capacity of the ESM to 500 billion euros.
Eyes were on the EU summit as investors waited to see decisive measures to tackle the debt crisis. The measures were considered acceptable despite the fact that EU leaders did not succeed to get approval of all 27-EU members to change treaty.
The decisions made by European leaders in addition to the ECB cut to interest rate by another 25 basis points to 1.00% and adopt of non-standard measures to give access to liquidity to banks improved the sentiment and enhanced risk appetite, yet speculations the SNB may intervene put some downside pressure on the franc.
This week, the main focus will be on inflation the FOMC rate decision in theU.S.and the SNB rate decision in addition to other important data from both economies.
The release of the data this week will be as follows:
Monday Dec. 12:
While Swiss economy lacks fundamentals, theU.S.will announce monthly budget statement at 19:00 GMT, where expectations refer to a narrow in deficit to $140.0 billion in Nov. from $150.0 billion a month earlier.
Tuesday Dec. 13:
TheU.S., at 13:30 GMT, will release retail sales for Nov. where both readings, less auto and excluding auto & gas, are expected to record 0.5% rise compared with the prior 0.6% and 0.7% respectively. At 19:15 GMT, the FOMC will announce its rate decision for Dec. 13 with expectations showing that there will be no change in interest rate that will remain at 0.25%.
Wednesday Dec. 14:
As of 08:15 GMT, the Swiss economy will release producer and import prices for the month of Nov. Credit Suisse Zew survey (expectations) for June will be available at 10:00 GMT.
Thereafter, U.S. MBA mortgage applications for Dec. 9 will be available at 12:00 GMT; one hour and a half later, with lower relevance, import price index is due.
Thursday Dec. 15:
At 08:15 GMT,Switzerlandwill release industrial production for the third quarter; analysts are predicting 0.9% drop from the prior 3.6% advance. At the same time, the main attention will be on the SNB 3-month libor target rate which is predicted to remain at 0.00%. Last week, Finance Minister Eveline Widmer-Schlumpf said negative interest rates and capital controls “are issues which are being examined.”
For theUS, eyes will be on a batch of US data including the release of PPI for Nov. at 13:30 GMT, where the annual reading excluding food and energy will be steady at 2.8%, according to median forecasts. At the same time, both empire manufacturing for Dec. and jobless claims report will be out. At 14:15 GMT, industrial production and capacity utilization for July will be out. Thereafter, particularly at 15:00 GMT, Philadelphia Fed will be available.
Friday Dec. 16:
The week ends with the release of KOF Institute Dec. economic forecast at 10:30 GMT, while theU.S., at 13:30 GMT, will release CPI which is expected to linger at 3.5% in the year ending Nov., where the reading excluding food & energy is predicted to steady at 2.1%.
Originally posted here
