By FX Empire.com

On Monday trading, the pair showed a downside correctional movement after falling over the past four weeks on the back of the turbulences from the euro area which enhanced demand on the dollar as a refuge.

With some optimism and hopes that European leaders will intensify their efforts to ease the debt crisis, the pair showed a drop.

On Nov. 29, European finance ministers will meet to discuss the capability of the EFSF to insure from 20 percent to 30 percent of sovereign bonds, while will show that Greece will receive the next tranche of last year’s 110 billion euros aid package.

Also, Italian newspaper La Stampa mentioned that the IMF is preparing for a rescue fund forItalythat may reach up to 600 billion euros.

Moreover, last week, the OECD said it expects the franc’s advance against the euro to curb exports and growth as well as raise unemployment. The OECD expects the SNB to raise the borrowing cost gradually by the end of next year.

Swiss National Bank President Philipp Hildebrand said in an interview on Monday the franc is still “highly valued,” highlighting that “Europe now faces a difficult crisis, and sinceSwitzerlandis embedded inEurope, the coming years will be difficult.”

Thomas Jordan, SNB Vice President, saidSwitzerlandstill risks relapsing into recession despite the intervention in September when the bank put a cap on the franc against the euro at 1.20, noting that the bank is ready to act if the franc’s appreciation weighed on growth prospects.

On Tuesday, as of 07:00 GMT, the Swiss economy will release UBS consumption Indicator for the month of Oct., yet the release is expected to have slight impact on the pair’s movements.

In theU.S., the main focus will be housing data starting with S&P/caseShiller, due at 14:00 GMT, followed by new home sales due at 14:00 GMT. At 15:00 GMT, consumer confidence is expected to soar to 44.4 in Nov. from 39.8.

This week the main focus will be the infamous jobs report in theUnited Statesas well as housing, manufacturing and confidence data. On the flip side, the Swiss economy will release important data such as 3q GDP, retail sales and PMI manufacturing.

Originally posted here