By FX Empire.com
Despite everything seen in the market and the high volatility and jitters, nothing has changed at all for the EUR/CHF! The move is still confined within a limited range and the outlook did not change for the pair with the lack of momentum and appeal for markets.
Investors are avoiding risk and surely fearful of the status of the euro amid the mixed and uncertain outlook for the debt crisis. Investors are mixed from as much as a euro break up all the way to the ability to solve the crisis and the far different odds are affecting the euro’s appeal.
With the debt crisis still the main market focus investors are surely not pro-euro enough to move the pair and surely are not bold enough to bet against the SNB which has proven, unlike European leaders, its willingness and ability to act in a firm and timely manner to stem the currency gains to shelter its economy.
This reaction is so far the missing link in Europe and the source of the agony. The October 26 resolutions are not turned into reality till now and the market shunned their slow reaction and forcing the ECB to act by keeping yields elevated and forcing more pressure on nations that might tip and fall if those rates persist starting with Italy and followed by Spain and not forgetting the spiral effect! Spain and France endured rising costs in the auction on Thursday and the market is still skeptic of the new government in Greece and Italy to succeed with protestors against further austerity still in the street.
The EUR/CHF will end the week Friday with the same choppy and tight range trading as the focus remains on the euro area and with the lack of data nothing will change with the end of the week position squaring.
Germany will end the week with the Producer Price Index for October at 07:00 GMT which is expected with 0.1% rise after 0.3% and on the year to slow to 5.3% from 5.5%.
Originally posted here
