By FX Empire.com
The EUR/CHF is back on the move and again on speculation that the nation might do more to weaken the franc.
The pair moved higher after Switzerland’s main trades union organization called on the central bank to further weaken the currency and raise the floor to 1.40 from the current 1.20 to stave recession fears and support the economy especially as the franc remains overvalued for now.
We can see that the pair is still caught in the speculation that the SNB might surrender to rising pressures, yet still the bank sees that the set floor is appropriate for now despite expectations from the market for otherwise on the mentioned remarks.
More volatility is expected in the coming days on the back of those comments until they lose steam, as they are moving the pair now until the plans from Europe are presented in the summit that can define if the euro will indeed maintain the strength to keep the pair biased higher and not artificially on SNB moves.
Switzerland will start the day at 06:00 GMT with the Trade figures for September where the nation suffered the weak global demand and franc’s rally that affected its exports heavily. The trade surplus was at 0.81 billion francs in August when exports slumped 7.0% and imports rose 0.9%.
The advanced consumer confidence for October is due at 14:00 GMT and expected to drop further to -20.0 from -19.1 in September.
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