By FX Empire.com
The EUR/CHF pair remained biased to the downside with the start of the week as the euro lost the gains versus the dollar and the BoJ intervention affected the market.
We still see that investors are not ready to replace their holdings for euro over the haven franc despite the SNB move. The pair is still reluctant to move and lacks major momentum and the focus remains on more from the European leaders and especially the G20 leaders this week to see what the outlook for the plan is since investors started to turn skeptic about the ability of the measures to contain the crisis.
The data from the euro area reminded investors of the real weak economic situation at hand and accordingly the bets are still not favoring the euro over the franc.
On Tuesday the lack of major fundamentals form the euro area will keep the weak momentum and appeal of the pair evident while focus turns to the data from Switzerland, though still for this week the main data from the Swiss economy will be the foreign reserves that define the SNB’s current movements.
Switzerland will release the Retail Sales for the year to September at 08:15 GMT after the previous month it was reported with 1.9% drop.
Also from Switzerland at 08:30 GMT we have the PMI Manufacturing for October hoping to see some improvement after the sector contracted the previous month as the index fell below 50 at 48.2.
