By FX Empire.com
Nothing new that we can add to the EUR/CHF movement as the pair continues to hover within the same tight range since Monday.
The market is still focused on the summit on Wednesday and what might the leaders present to contain the crisis. Investors are worried that the measures will not be strong enough and that is limiting their risk appetite towards the euro, and at the same time cannot risk going strongly short with the SNB floor standing strong.
This fear is keeping the pair tight until the final answer from the leaders on Wednesday. The EU leaders and also another euro leaders summit will take place in Brussels on Wednesday, where the meetings are still to be held despite the announced cancelation of the EU finance ministers meeting as announce on Tuesday which investors took as a negative sign ahead of a critical summit.
We will also eye the developments in Germany as the parliament will debate the proposed measures for the EFSF and what the leaders will present and any veto from the Parliament will limit Merkel’s ability to change anything or the leaders to go forward with the agreement at that fact.
More volatility is expected and we can saw that only a strong breakthrough in the measures will send the pair higher where weak recommendations will send the pair lower yet will remain limited to 1.20 floor.
Read more daily and weekly Forex Analysis here.
