The EUR/CHF pair extended yesterday the gains recorded this week, where the euro gained strength against the Swiss Franc after the flow of upbeat fundamentals and bond sales from the euro-area region.
The euro advanced against the franc after Spain and the European Financial Stability were able to access the capital market easily, where investors were tracking the yields on Spanish and EFSF yields after the credit rating cuts on Friday spread pessimism and losses across the board.
Today, with the lack of major fundamentals from both nations, eyes will be concentrated on the German bond sale as the country is set to sell bonds in the first test after the downgrades seen in the past short period.
The EUR/CHF pair is expected to fluctuate heavily today, yet it could move in line with the sentiment in the market, as the euro could strengthen more than the franc when optimism dominates the market.
The euro area Construction Output for November is due at 10:00 GMT after it dropped 1.4% in October and on the year was down 2.8%.
Switzerland will also provide markets with the ZEW expectations for January, with eyes focused on any improvement from the previous -72.0 figure.
Auctions:
10:15 GMT Germany sells bills
10:30 GMT Portugal sells bills
10:30 GMT Belgium sells bills
Originally posted here
