The EUR/CHF pair fluctuated heavily in the past weekafter the heavy fundamentals and events seen in the market; however, the pair is expected very volatile today also due to the critical fundamentals waited from the euro zone and Switzerland, which are expected to affect the pair sharply.
Eyes will be focused today on the unemployment report and the retail sales index for Switzerland, where better than expected data should support the franc to gain strength against the common currency and in result the pair is expected to decline depending on this data.
Investors will also wait the trade balance figures for Germany, the euro zone largest economy, where strong figures from Germany should force the inverse impact on the pair, as the euro will gain strength against the franc.
In general the most important events will be the French and the German bond auctions, where investors will track the yields on those bonds and also the demand for those bonds, which could give indications whether rating agencies will downgrade the credit rating of the euro zone largest two economies or not.
Switzerland will start this week at 06:45 GMT with the unemployment rate for December, where the non-seasonally adjusted rate is expected higher at 3.3% compared with the previous of 3.1%. In addition, the seasonally adjusted rate could have climbed to 3.1% from 3.0%.
Germany will join this week at 07:00 GMT with the trade balance figures for November, with expectations the trade surplus could have expanded to 12.0 billion euros from the previous 11.6 billion euros surplus. In addition, the seasonally adjusted exports index is projected to expand by 0.8% from the previous drop of 3.6%, while the seasonally adjusted imports previous index was -1.0%. Furthermore, the current account previous surplus was 10.3 billion euros.
At 08:15 GMT Switzerland will provide markets with the retail sales for November, which dropped in the previous month by 0.2%.
At 11:00 GMT Germany will provide the industrial production index for November, where the non-seasonally adjusted annual index is expected to expand by 3.6% from the previous expansion of 4.1%, while the seasonally adjusted monthly index could have fallen by 0.5% from the previous growth of 0.8%.
Auctions:
Slovakia will auction bonds at 10:00 GMT, while Germany will auction bonds at 10:15 GMT and finally France will sell bonds at 14:00 GMT.
Originally posted here
