By FX Empire.com
The EUR/CHF continued to hover in a tight range and is not biased with the market sentiment or the euro’s movement and rather fluctuating within its range based on the SNB intervention that for now halted the volatility for the pair.
We can see that the euro softness on Tuesday did not affect the pair and it was trading within the same range and rather biased to the upside, while the euro rally in the past week was also not affected on the pair and it did not strengthen as the risk appetite is not affecting the pair, especially as the franc is the haven currency and it only weakened on the SNB intervention and not for fundamental franc weakness.
We can still expect more volatility for the pair ahead of the summit next Sunday, especially after Moody’s warned France that it is at risk from increasing its support to bailouts and debt laden nations and said it might change its stable outlook on the French “Aaa” rating to negative, a signal that France might be pressured in the coming period whether in making moves or in extending its support leaving more doubt over the ability of Europe to contain the crisis.
On Wednesday the euro area will release the August Current Account at 08:00 GMT where the deficit might have narrowed from -12.9 billion in seasonally adjusted terms after the trade deficit narrowed.
At 09:00 GMT the Construction Output for August is due after it rose 1.4% in July and was higher 1.2% on the year.
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