By FX Empire.com
The EUR/CHF fluctuated heavily with the start of the week as investors continued to assess the impact of the G20 pledges on the market while reacting negatively to downbeat German comments.
The market started the session on Monday with continued optimism that European leaders are walking in the right path to contain the crisis and will present a comprehensive plan next week when the leaders meet on October 23.
The plans are to focus on putting Greece on a sustainable while also focus on supporting banks and recapitalization and expanding the firepower of the EFSF; nevertheless, the optimism faded into the European session after comments from Merkel’s spokesman were downbeat signaling the mixed view among leaders again as Merkel said that expecting a final fix to the crisis is not realistic and the summit will not conclude with all the measures saying the solution will extend into next year which accordingly weakened the euro.
This change in the rhetoric suppressed the upside momentum and drove the euro to the downside versus the dollar as the market will remain volatile and mixed until the final plan is released.
On Tuesday the euro area Zew Economic Sentiment for October is due at 09:00 GMT which is not likely to have improved from September’s -44.6.
