The euro ended last week with losses versus the franc that was already trading higher on fears the SNB lost is arch franc defender after after Hildebrand’s unexpected resignation.
The news hit the euro hard on Friday and extended the EUR/CHF losses that S&P downgraded France and likely Austria while Germany was safe, all reports were not confirmed with the end of the European session on Friday yet the market saw that the possibility is high to be seen as soon as this week and surely Fitch’s assurances that France was unlikely to lose the rating is now a lost cause.
On Monday we expect the volatility to extend and the losses to be seen with the lack of fundamentals leaving the eyes on the debt crisis and if the downgrades are confirmed. The volatility will extend with auctions scheduled for the day and that might see the end of the stability at the bond market and last week’s good auction run.
The Swiss economy will start the week at 08:15 GMT with the Producer & Import Prices for December after the 0.8% drop recorded the previous month and 2.4% decline on the year,
Auctions:
10:00 GMT Slovakia sells bills
10:30 GMT Netherlands sell bills
14:00 GMT France to sells bills
Originally posted here
