On Monday, the USD/CHF halted its rise as the improvement in the general sentiment after Merkel-Sarkozy meeting came out with an agreement between the leaders to introduce a plan which includes new measures to alleviate the Greek debt dilemma, recapitalize banks capital and speed up economic coordination in the euro area by the end of the current month, probably before the G20 summit in Cannes on November 3-4. With serious talks between the region’s two largest economies’ leaders and improvement in U.S. data, especially last Friday’s non-farm payrolls report, hopes increased that the recovery curve is rebounding which damped demand on the dollar as the most favorite refuge in the recent period amid the several interventions by the SNB to curb the franc’s appreciation. Also, some investors bet that there pair will do a correction after franc had risen to eight month high versus the dollar. On Tuesday, both economies lack fundamentals, thus the pair is expected to follow the general sentiment in the market. Thus, we might see further downside correction in the pair if the sentiment continued to show improvement.
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